CS Nakhumicha sets the ball rolling in replacing NHIF with 3 new funds under SHA

CS Nakhumicha sets the ball rolling in replacing NHIF with 3 new funds under SHA

NAIROBI, Kenya, Nov 22 – The Social Health Insurance Act, 2023 that repeals National Hospital Insurance Fund (NHIF) and established 3 new funds has come into effect today.

The three new funds will include the Primary Healthcare Fund, Social Health Insurance Fund and Chronic Illness and Emergency Fund.

Health Cabinet Secretary Susan Nakhumicha made the announcement in a gazette notice which paves way for planned reform in health financing and seeks to address issues that have faced the now defunct NHIF.

Following the gazzement,Social Health Authority (SHA) will replace the National Health Insurance Fund, pegged on the Social Health Insurance Act, 2023.

Provision in the SHIF Act stipulates that any person who is eligible to be registered as a member of the national insurance fund will be required to produce proof of compliance to be allowed to access public services.

“Any person who is registerable as a member under this Act shall produce proof of compliance with the provisions of this Act on registration and contribution as a precondition of dealing with or accessing public services from the national government, county government or a national or county government entities,” the Act stipulates.

The Social Health Insurance Act stipulates that all non-Kenyans who reside in the country shall be eligible for registration as members of the Fund.

This applies to a non-Kenyan resident ordinarily residing in Kenya for a period exceeding 12 months.

However, a non-Kenyan who intends to enter and remain in the country for less than 12 months shall be required to have travel health insurance coverage.

To ensure punitive measures to curtail corruption are instituted, those suspected of defrauding the health insurance scheme, through false statements risk being jailed for five years or fined Sh1 million or both.

The defunct National Health Insurance Fund (NHIF) is expected to transfer all the cash balances to the Social Health Insurance Fund.