NHIF gets green light to effect revised rates
What you need to know:
- Judge says court cannot stop the implementation due to prior ruling
The national health insurer has a free hand to implement the disputed revised rates, a court ruled on Thursday.
The National Hospital Insurance Fund (NHIF) had initially planned to roll-out the new rates on October 1, 2012, but its hands were tied following a court order.
The Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals and Allied Workers (Kudheiha) had obtained the orders after filing a petition seeking to challenge the proposed increase in contribution rates on grounds that NHIF had not taken into account the economic state of the contributors.
The Union had also told the court that minister for Medical Services Anyang’ Nyong’o and Labour’s John Munyes were planning to compel workers to pay the rates without consultation.
The union therefore wanted a stay of the implementation of the rates pending hearing and determination of their petition.
But while delivering his ruling, Industrial Court judge Nzioki wa Makau held that the court could not stop the implementation because the same matter was brought to court by other parties in separate occasions and the courts had made a determination against the same.
Mr Justice Makau said the only solution for Kudheiha lied in the Court of Appeal where the Central Organisation of Trade Unions (Cotu) has a pending appeal relating to the same matter.
He noted that the evidence produced in court by NHIF, Medical Services and Labour ministries as well as the Attorney-General, point to the fact that Kudheiha had been adequately represented by Cotu in the negotiations leading to the proposed rates.
Through their lawyer, NHIF had presented documents which had earlier been filed in court by Cotu where it was challenging the new rates and it had pleaded that it had the membership of 37 affiliate unions, including Kudheiha.
“The issues in contention raised by Kudheiha are issues that have been in court in various forums and the probability of the petition’s success has thus been lowered since rulings have been made earlier,” said Mr Justice Makau.
NHIF proposed self-employed workers and volunteers to contribute Sh500 and Sh300 respectively.
