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Country Report Out. Kenya. October 23, 2009. Kenya . Your Ultimate Partner in Promotion of Health Insurance. Team Members. Geofrey Njoroge Kimani- Principal Economist, Ministry of Medical Services Eunice Cherotich Kigen- Finance Officer, Ministry of Finance
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Country Report Out Kenya October 23, 2009
Kenya Your Ultimate Partner in Promotion of Health Insurance
Team Members • Geofrey Njoroge Kimani- Principal Economist, Ministry of Medical Services • Eunice Cherotich Kigen- Finance Officer, Ministry of Finance • Ayub Njoroge Mwando- Chief Economist, Ministry of Public Health and Sanitation • Dr. Nelson Gitonga- Senior Private Health Sector Expert • Peter Kimotho Ngure- Christian Health Association of Kenya/ HENNET • Dr. Amit Thakker- Kenya Private Health Sector Alliance (PPP Health Kenya) • Mentor: Netsanet Walelign- World Bank • Facilitator: Sarah Bittman- USAID/Washington
Current Health Insurance Health Financing • Public: • National Hospital Insurance Fund- est. 1966 • Run as a state corporation • Enrollment is mandatory by law for formal sector • Informal sector can join voluntarily • Financed through payroll deduction from employee on a sliding scale (no government or employer contribution) • High co-pay (thin benefits) • Reverse subsidy • Total coverage: about 20% of the population • High administrative expenses • NHIF has surplus funds • Management board composed of representatives of all stakeholders
Current Health Insurance Health Financing • Private: • Private insurance companies • Cover about 3% of the population • Kenya has close to 43 private insurance companies- 14 are medical • Most are employer-paid group schemes • 4 companies control close to 70% of the market • All members covered are already covered by NHIF • Medical Insurance Providers • Same characteristics as private companies, only more recent
Current Health Insurance Health Financing • Private continued • Others • Self-funded groups (employer-based schemes) • Employer carries whole risk • Mixed models/bank assurance • Layering benefit packages of micro-finance institutions with NHIF and selling to groups- e.g. Kenya Women's Finance Trust • Insurance Regulatory Authority established to regulate insurance providers (doesn't regulate NHIF)
Opportunities to expand / improve health insurance • NHIF beginning to pilot out-patient coverage and comprehensive benefits package • Exploring capitation as a mode of health finance • NHIF reforms • New Insurance Types: • Low Cost Private Insurance • Piloting delivering low-cost insurance through existing micro-finance mechanisms • Output-Based • Voucher system- engaging both public and private providers • Collaboration between German bank KFW and MoH
Opportunities to expand / improve health insurance • CBHI • New concept, needs to be explored • Small jamiibora sacco scheme • Provider-based plans • Mainly FBO, small private facilities providing affordable health coverage to formal sector • Strengthen National Health Service to care for poor and indigent • Structure is there; needs to be strengthened and made autonomous • New regulatory framework to embrace innovative ideas • New Health Schemes Act to reduce cost of entry, promote affordable health coverage
Opportunities to expand / improve health insurance • Health Care Financing Working Group has been started • Fully representative of all sectors • 5 Pillars: • NHIF • Need to maximize efficiency, add out-patient coverage • Regulatory Framework • Need to review health policy, health-related Acts to align with Vision 2030 document • Looking at the poor • Find a tool to identify them; work to expand coverage to them • Private-Public Partnerships • A mandate is to develop alternative health financing models • Health Management Training • Skilled HR component
Potential challenges or obstacles • Regulatory Issues • Outdated policy and legal framework • Financial systems • Fiscal governance and regulatory bodies • Inadequate financial resources for comprehensive universal health care • Political will is a challenge • Stakeholder consensus • Health system challenges • Availability of providers, distribution, quality • Poverty identification and targeting
Actions and next steps that we can take • Report back and debrief the authorities and working groups (private, FBO, government stakeholders) • Crystalize quick wins through consultative process (PPP) • Fast-track health policy and Acts review • Update Health Financing Framework (5 year strategy) with lessons learned here to strengthen roadmap
Actions and next steps that we can take • Continue building consensus through stakeholder dialogue • Hold stakeholder workshop similar to this one • Broad research initiatives • Create repository of health financing information • Health Financing issue in budget for 2010- 2013 • Raise with MTEF