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NHIF to increase contributions every 2 years in law change
The National Hospital insurance Fund (NHIF) building in Nairobi.
Monthly contributions to the National Hospital Insurance Fund (NHIF) will be reviewed every two years in proposed changes to the law aimed at increasing the insurer’s funding pool to match the rise in treatment costs.
Senators have proposed the automatic reviews of contributions in the NHIF (Amendment) Bill 2021 that is set for debate and approval by MPs this month.
The proposal if adopted will boost efforts by the State-backed insurer to raise more cash in the face of the increasing costs of treatment for chronic diseases and claims that have piled pressure on its cash reserves. The NHIF has not reviewed monthly contributions for the past six years.
“The [NHIF] board shall every two years carry out a review of the applicable tariffs payable to the fund and payable out of the fund to empanelled contracted healthcare providers,” reads the amendment to the Bill.
NHIF last reviewed its rates in April 2015 and increased monthly contributions for formal workers from Sh350 to a graduated scale of up to Sh1,700 based on pay.
The State-backed insurer has been grappling with the rise in claims paid and the marginal increase in annual contributions.
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