State Pledges to Settle Sh 30 Billion Owed By NHIF to Hospitals.
KENYA : The government has given an assurance that it will settle the Sh30 billion owed to hospitals by the now defunct National Health Insurance Fund (NHIF) following the transition to the Social Health Insurance Fund (SHIF), A new Health Scheme.
Medical Services Principal Secretary, Mr. Harry Kimtai, said already Sh4.5 billion had been released to health facilities last week, adding that a further Sh4.5 billion would be disbursed by Friday.
While announcing that the government has committed to pay the health care facilities Sh9 billion by the end of next month, Mr. Kimtai said the State had directed County Commissioners and County Executive Committee Members (CECMS) in charge of Health Services to ensure that paid-up members of the Social Health Insurance Fund (SHIF) are not denied services.
The Principal Secretary advised Kenyans who have registered with SHIF to upload the names of their dependents on the fund’s portal so that they may benefit whenever need arises.
Mr. Kimtai stated that the move to settle the Sh30 billion is a crucial step to maintain the health facilities’ trust and cooperation under SHIF. He pledged that the remaining payments will be made progressively, based on the availability of funds.
Hospitals and other healthcare providers were hesitant to shift to SHA due to the financial strain caused by unpaid claims.
The Principal Secretary indicated that a national steering committee that brings on board all stakeholders in the health sector had been put in place to help smooth the transition from NHIF to SHIF.
“We acknowledge there have been glitches in the course of the transition to the new SHIF, but we want to assure Kenyans that we are ironing out the challenges, and soon operations at the new fund will run seamlessly. The government is committed to ensuring that every Kenyan gets quality and affordable health care,” the Principal Secretary pointed out.
NHIF to SHIF : If you earn Sh 100,000 your Contribution rises From sh 1,700 to sh 2,750 monthly
The Kenyan Government, through the Ministry Of Health, recently rolled out a new health Scheme, Social Health Authority (SHA) under which Social Health Insurance Fund (SHIF) is incorporated.
The New Health Scheme, replaces the National Health Insurance Fund, NHIF which has been embroidered in several Multi-Million Misappropriation exposes over the years.
Non-Salaried Kenyans.
A household whose income is not derived from salaried employment shall pay an annual contribution to the Social Health Insurance Fund at a rate of 2.75% of the proportion of household income.
SHA, in collaboration with the Ministry of cooperatives and micro, small and medium enterprises development and other financing institutions, shall provide premium financing to non-salaried persons to enable them to pay their annual contributions within the intervals under which their income becomes available.
According to the Ministry of Health, Data will be collected on non-salaried households to determine and estimate the household’s ability to pay SHIF contributions.
The amount payable every month, shall not, in any case, be less than Kenya shillings three hundred, Ksh 300.
Pay Slips Deductions.
Salaried Kenyans shall pay a monthly statutory deduction contribution to the Social Health Insurance Fund at a rate of 2.75% of the gross salary or wage of the household.
An employer shall deduct the same contribution of a salaried contributor and submit the contribution to the Authority on behalf of the employee at the rate provided by the ninth day of each month.
For example, a person earning Ksh. 20,000 per month will now pay Ksh 550 monthly and Ksh. 6,600 annually.
At the same time someone earning Ksh. 100,000 per month, the contribution rises from the previous Ksh. 1,700 to Ksh. 2,750 monthly.
There is no cap on contributions under SHA; for instance, a person earning Ksh. 500,000 monthly will pay Ksh.13,750 each month, totaling Ksh.165,000 annually.
Any person who fails to pay any contribution in respect of any period on or before the day on which payment is due shall be liable to a penalty equal to two percent (2%) of the amount due.
To ensure compliance with the deductions, SHIF Act makes it mandatory for all adult Kenyans to contribute, failure to which they will be denied government services.