MPs put Minet on the spot over Sh17B teachers insurance deal
National Assembly Education committee chairperson Julius Melly.
Members of Parliament are mulling blocking the release of Sh17 billion to Minet Insurance brokers to cover for the second year of their contract with Teachers Service Commission (TSC) in the provision of medical cover to teachers.
The National Assembly Committee on Education made the announcement after a petition before them accusing the medical insurer of offering poor services to teachers.
The committee chairman, Julius Melly, said the legislators will advise the Treasury not to release money to TSC for the second year of the contract if Minet cannot appear before the committee and justify the value for taxpayers’ money in the services they are offering to teachers.
“The contract is still running and if there is no value for money, then we will advise the Treasury otherwise,” Mr Melly said.
The total amount of the contract that is staggered in three years is Sh53.5 billion.
The amount in the first year that runs from December 1, 2022 to November 30, 2023 is Sh14.8 billion, in the second year that runs from December 1, 2023 to November 30, 2024, Minet will earn Sh 17.9 billion, while in the third year commencing on December 1, 2024 to November 30, 2025, the insurer will make Sh20.6 billion.
Minet together with representatives were to meet the committee for the second time but the insurer wrote a letter to MPs and also submitted a written submission that was accepted by the lawmakers.
“This is to inform you that the departmental committee on education has acceded to your request and acknowledges the receipt of your written submission,” reads a letter from parliament to the Managing Director of Minet, Sammy Muthui.
Medical Administrators Kenya Limited (MAKL) who failed to appear before the committee were however fined Sh500, 000 as stipulated in the Standing Orders 191.
The committee said MAKL will have to produce a receipt as evidence of payment before their next meeting scheduled for December 19, 2023.
“Absconding of the meeting called by MPs is a testimony of what the teachers are facing out there,” Mr Melly said.
The lawmakers insisted that Minet must appear before them and answer on the value of money teachers are getting from the medical scheme.
“I want to tell Minet and Bliss that you have nowhere to hide in this country. You either provide services or leave the country,” said Lugari MP Nabii Nabwera.
Marakwet West MP Timothy Kipchumba supported the fine imposed on MAKL saying it should serve as a warning shot to the insurer.
On Tuesday last week, the committee threatened to cancel the contract stating they have numerous complaints from teachers of poor services.
In the deal, teachers have access to 829 service providers across the 47 counties. These include 146 public hospitals, 133 mission hospitals, 63 anchor (Bliss) clinics and 487 private hospitals
As per the contract, Bliss is a capitation provider having its own network of 63 clinics across the country. These clinics are among the wider service provider panel currently consisting of other 771 primary service providers.
As a capitation provider, Bliss bears the associated risk of capitation and contracts and signs third party partnerships with service providers to provide access where there is no Bliss presence through an administrator, Medical Administrators Kenya Limited.
The contract is renewed yearly subject to satisfactory performance of obligations by the consortium in the preceding year and availability of sufficient funding by the exchequer.
“The commission shall be at liberty to terminate this contract with no subsequent liability to the parties should the exchequer fail to fund or support the contract,” reads the contract.
Editor’s Note: This story has been updated to reflect the fact that Minet was exempted from appearing before the National Assembly Committee on Education.
