In a significant move, the Cabinet announced on Tuesday the repeal of the National Health Insurance Fund (NHIF) and the introduction of a comprehensive strategy to establish three distinct funds, all aligned with the objective of advancing Universal Healthcare Coverage (UHC) under the Kenya Kwanza administration.
Under this transformative restructuring, the NHIF will undergo a transition, giving rise to three distinct funds: the Primary Healthcare Fund, the Social Health Insurance Fund, and the Emergency, Chronic and Critical Illness Fund.
Primary Healthcare Fund
In a bid to expedite UHC efforts, the national government will directly fund the Primary Healthcare Fund. To enact this shift, Parliament will be tasked with the passage of the Primary Health Care Bill, 2023, which will delineate the areas of direct government involvement in healthcare provision. Notably, this fund will prioritize fundamental services such as maternal, neonatal, and child health care. The levels of the healthcare hierarchy will also play a pivotal role in delivering these services, with the first three levels being the primary focus.
Social Health Insurance Fund
The government, through the social health insurance bill, plans to revamp the structure of the National Hospital Insurance Fund (NHIF) to establish a separate Social Health Insurance Fund. This move aims to transform health insurance from its current model and create a system that safeguards all segments of the population from financial vulnerabilities stemming from illness-related expenses. A monthly premium model will underpin this fund, with President William Ruto suggesting a reduction of the current Sh500 contribution to Sh300. Civil servants, including police and National Youth Service personnel, will continue to benefit from insurance services. With the parliamentary approval of the bill, the fund will place special emphasis on extending social insurance protection to Kenyan citizens.
Chronic and Critical Illness Fund
A dedicated fund will address the pressing issue of chronic and critical illnesses, including cancer, which has been identified as a significant financial burden for households due to the exorbitant costs associated with treatment. The new fund seeks to mitigate this issue by focusing on comprehensive and accessible treatment options for such ailments. Presently, families often resort to seeking treatment abroad due to the unaffordability of local care. This specialized fund aims to enhance financing options for affected Kenyans, offering relief from the financial strain caused by these illnesses.
This strategic overhaul comes in response to the identified limitations of the current NHIF financing model, which has been criticized for inefficiencies and insufficient capacity, hampering timely access to treatment for the less privileged. Through these reimagined funds, the Kenyan government endeavors to provide more effective, targeted, and accessible healthcare services, aligning with the overarching vision of Universal Healthcare Coverage.
