NHIF Acting CEO: External Benchmarking Preceded Proposal to Raise Contributions to 2.75%
Dr. Samson Kuhora, the acting chief executive officer of the National Health Insurance Fund (NHIF). Reports that the state conducted external benchmarking before proposing to increase monthly contributions to 2.75 percent.
Kuhora stated on Tuesday’s episode of Citizen TV’s The Explainer Show. That the State compared NHIF’s data with those of other health agencies in Tanzania, Ghana, and Nigeria. Before settling on the 2.75 percent deductions.
“We performed an actuarial analysis to determine how much it would cost to provide the essential benefits package and compared it to the current contributions, which range from 5% for the lowest income earners to 1.2% for the population earning more than Ksh.100,000,” he explained.
“A weighted matrix suggested that the equalizing effect would be to offer a 2.75 percent interest rate. This amount will generate revenue to finance social health insurance for the government-proposed social benefits package.”
Dr. James Nyikal, an elected official from Seme. Stated that the proposed deductions are acceptable so long as Kenyans receive value for their money.
“An actuarial analysis has determined what is required to provide the essential package. To that extent, it’s acceptable. More important than whether people can afford it is how it is utilized.”
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Nyikal, a member of the National Assembly’s Health Committee. Stated, “People pay so much for health care, so if they are paying that much and receiving full coverage, it is acceptable.”
Dr. Dennis Miskellah, Deputy Secretary General of the KMPDU. Questioned how the recently proposed NHIF tax deductions came about, as the Union’s members were allegedly not consulted.
Moreover, he stated that NHIF inefficiencies must be addressed before approving the proposed deductions and that increased deductions do not automatically result in improved healthcare services.
“From the worker’s perspective, we are not pleased with how this idea was conceived,” he said. “I don’t recall the workers, whose money is being deducted, ever being involved in the decision-making process.”
“More importantly, the issue is organizational inefficiency. As employees, we believe that increasing deductions will not solve NHIF’s inefficiency issues.”
Dr. Simon Kigondu, president of the Kenya Medical Association, concurred with Miskellah that the proposed NHIF rate is too expensive for salaried workers.
“It is possible to equalize funds. “Therefore, we propose that a portion of the VAT should be a tax component to fund NHIF so that this relatively high 2.75 percent is supplemented,” he said.
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The proposed NHIF regulations for 2023 state that if a self-employed contributor declares a monthly income of less than Ksh.300, they will be required to pay Ksh.300 to the fund.
A portion of Kenyans support the proposal, which they believe will improve health services.
To access health services, unemployed Kenyans will be required to contribute Ksh.1,000 to the fund, an increase from the current Ksh.500.
In the proposed regulations, the national government shall pay Ksh.13,300 on behalf of any person listed by the State Department of Social Protection as poor or vulnerable.
NHIF Acting CEO: External Benchmarking Preceded Proposal to Raise Contributions to 2.75%
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