House demands answers over new NHIF rates

FILE | NATION. Parliament at a past sitting. The House has asked Government to explain the rationale behind the increase of monthly contributions to the National Hospital Insurance Fund and the process of its development.

The storm over the increase of monthly contributions to the National Hospital Insurance Fund on Wednesday blew into Parliament, with the Government asked to explain the rationale behind it and the process of its development.

The request by Ikolomani MP Boni Khalwale for Medical Services minister Prof Anyang’ Nyong’o came two days before the case filed by the Central Organisation of Trade Unions is heard for the first time by Justice James Rika of the Industrial Court.

Cotu’s attempt to stop the implementation of the increased rates has been certified urgent and will be heard on Friday, August 20.

In Parliament, Dr Khalwale asked Prof Nyong’o to provide the scientific basis for the increase, by up to 600 per cent, of the monthly contributions mandatory for all employed Kenyans.

Dr Khalwale also asked the minister to explain the amount of refunds NHIF would make for treatment at high-cost hospitals and whether there was adequate consultation before the rates were gazetted and employers asked to implement them starting next month.

He also asked the minister whether he is aware of an audit being conducted by the International Finance Corporation, a branch of the World Bank, to establish the fund’s ability to finance the outpatient services it seeks to introduce with the new rates.

Dr Khalwale also asked the minister to state whether he would rescind the NHIF decision after considering the results of the IFC audit.

“What is the relationship between the new rates and the government’s intention to introduce a universal health insurance scheme for all Kenyans?” he asked.

Prof Nyong’o was said to be out of the country and it was therefore hard to establish when an answer would be provided, but Dr Khalwale insisted the answer should be brought soon since the rates will be in force staring September.

Dr Khalwale joins a growing list of those opposed to the implementation of the new rates: the Central Organisation of Trade Unions has gone to court and has been joined by a Mr Kiriro wa Ngugi and Ms Diana Patel while the Union of Civil Servants is thinking over enjoining themselves to the case.

Prof Nyong’o has in the past defended the increase on the basis that it is timely- the last review was 21 years ago- and will benefit the poor by enabling the provision of healthcare regardless of the contributor’s financial status.