Board Chair Michael Kamau Highlights Universal Health Coverage as Motivation for Restructuring
In a bid to shed light on the rationale behind the recent division of the National Health Insurance Fund (NHIF) into three distinct entities, Board Chairperson Michael Kamau has emphasized that these changes were conceived to bolster the government's efforts in implementing Universal Health Coverage (UHC).
Addressing the media on Thursday, Kamau underlined that the restructuring was not an attempt to abolish NHIF, but rather an initiative aimed at addressing the challenges that had previously hindered the Fund's operations.
The proposed transformation, championed by President William Ruto's Cabinet, entails the splitting of NHIF into the Primary Healthcare Fund, the Social Health Insurance Fund, and the Emergency, Chronic, and Critical Illness Fund.
Kamau clarified that these proposals, greenlit by the Cabinet on Tuesday, August 29, would mandate contributions to the Social Insurance Fund for all Kenyan citizens.
He noted that under the existing NHIF model, contributions were voluntary, leading to a significant portion of the population missing out on insurance coverage.
Kamau also highlighted the escalating costs of treating chronic illnesses as a driving factor behind the Cabinet's decision to endorse these changes.
"The scope of NHIF was primarily focused on treatment. The preventive aspect needed reinforcement, leading to the establishment of the Primary Healthcare Fund and the mandatory Social Health Fund," Kamau remarked.
He further explained that a new Critical Illness Fund was being established to alleviate the strain on the Social Health Fund, acknowledging that critical illnesses were depleting NHIF resources.
Kamau assured that relevant bills outlining these changes would be made public in due course, revealing that Health Cabinet Secretary Susan Nakhumicha was currently in possession of the drafts.
"We are in a phase of enhancing NHIF's capacity to transition," Kamau added, noting that the CS was better suited to elucidate on the funding model and other intricacies.
Kamau, a former Transport Cabinet Secretary, delivered these insights during the launch of the NHIF-EACC Fraud Prevention Audit at the Fund's headquarters in Upper Hill, Nairobi. The Ethics and Anti-Corruption Commission (EACC) will conduct a comprehensive analysis of NHIF systems for 45 days, identifying vulnerabilities and offering recommendations to enhance service delivery while curbing graft.
The forthcoming trio of funds will be underpinned by several proposed bills, including the Primary Health Care Bill of 2023, the Digital Health Bill of 2023, the Facility Improvement Financing Bill of 2023, and the Social Health Insurance Bill of 2023.
Since assuming office, President Ruto has signaled his intention to reform NHIF, with a focus on extending healthcare coverage to all households. He has also suggested a revised deduction model, wherein high-earning individuals would contribute more significantly to the fund.
Proposed in the National Health Insurance Fund Regulations 2023, the new model prescribes a fixed 2.75 percent monthly contribution of gross salaries for all employed Kenyans, replacing the current tiered structure based on salary scales.
"Equity demands that the President doesn't pay Ksh1,700 while an ordinary citizen pays Ksh600 for NHIF. My salary is Ksh1 million, yet a boda-boda operator earns Ksh700," Ruto declared during a rally in May.
