Union to fight new NHIF rates

The Central Organisation of Trade Unions has vowed to challenge a court ruling that gave the green light to the National Hospital Insurance Fund to implement a proposed universal medical scheme.

In a ruling made on Wednesday, High Court judge Mohamed Warsame allowed NHIF to implement the progressive rate system that will see workers who earn higher salaries contribute more to the fund.

In a statement signed by Cotu secretary-general Francis Atwoli, the organisation said that it welcomed the court ruling, citing respect for the independence of the Judiciary, but vowed to block implementation of the scheme.

“Cotu welcomes the ruling by the High Court on the new NHIF rates but maintains an earlier stand that as long as the decision by the NHIF management was reached unilaterally without prior consultation with the Kenyan workers, none of its 1.5 million plus members is ready to part with even a single cent towards the new scheme,” says the statement.

Cotu plans to lodge an appeal against the ruling.

In the meantime, it has instructed its lawyers to move to court and obtain orders seeking to block execution of the new rates while awaiting the hearing and determination by the Court of Appeal.

Cotu is also unhappy with what it has termed an attempt by NHIF to illegally force Kenyan workers to bear the burden of providing healthcare services to the unemployed population.

“The country’s Constitution is overtly clear on the provision of healthcare. It is every Kenyan’s fundamental right to have access to the highest attainable standard of health and such medical care facilities should be provided for by the government from the budgetary allocation collected from taxpayers,” says the Cotu statement.

Cater for the poor
The battle between NHIF and Cotu erupted in 2010 when the hospital fund proposed to increase its rates so as to cater for the poor and unemployed in what was termed as a universal medical scheme.

The new rates that are set for implementation are capped at Sh150 for workers earning a monthly salary of below Sh6,000, Sh1,000 for those earning above Sh50,000  and Sh2,000 for employees earning above Sh100,000.

The progressive rates are meant to replace the current rates that are at a maximum of Sh320 per month regardless of one’s level of income.

Through the universal medical scheme, NHIF is expected to expand its basket of obligations to include catering for outpatient fees.

At the moment, NHIF only pays inpatient hospital costs for its members, leaving the rest of the population who are not contributors to the fund unable to access cheap health services.

According to the National Health Accounts, of the Sh70 billion generated from the health sector in 2010, only 9 per cent was channelled to risk pooling, making health insurance coverage in East Africa lower than that of South Africa.

Statistics from the International Finance Corporation indicate that out of pocket expenditure in healthcare financing has been on the increase due to an unfavourable risk pooling mechanism in the local health insurance sector, adding weight to the need for universal health insurance in Kenya.

NHIF emerged winners in Wednesday’s ruling by the High Court but its victory may be short-lived given that it has come at a time when the country is faced by a series of strikes by workers over poor salaries.