Government Introduces New Payment Method for Health Contributions

President William Ruto has launched the Lipa Polepole scheme under the Social Health Authority, designed for informal sector workers to pay health insurance in installments. This initiative aims to tackle irregular premium payments. Meanwhile, the World Bank has called for a reassessment of the funding model for the Social Health Insurance Fund due to financial concerns.

In a significant move aimed at enhancing healthcare accessibility, President William Ruto has launched a new payment scheme called “Lipa Polepole” under the Social Health Authority (SHA). This initiative targets Kenyans employed in the informal sector, allowing them to pay their insurance contributions more easily. Announced during the 62nd Madaraka Day celebrations in Homa Bay, the scheme offers a choice for yearly premiums to be paid in installments or a flexible payment plan that suits individuals’ financial situations.

“To address persistent challenges such as irregular premium payments, especially among the informal sector, the government of Kenya is introducing an inclusive payment solution known as lipa SHA polepole,” Ruto stated. This statement underscores an attempt to alleviate the financial pressures faced by many Kenyans when it comes to healthcare payments. The president indicated that payments could be made in weekly, monthly, or daily installments, thus catering to various financial capabilities of families across the country.

This innovative payment system hinges on collaboration between multiple ministries, including Health and Cooperatives, and extends support from financial and mobile network providers through the Hustler Fund. Ruto further revealed that approximately 50,000 Kenyans have registered for SHA coverage, which has already successfully provided care for 4.5 million citizens.

However, recent recommendations from the World Bank could pose challenges for the country’s healthcare strategy. Following a report released on May 27, the organization urged the government to reassess the Universal Health Coverage (UHC) model, from which the Social Health Insurance Fund (SHIF) emerged. The report specifically highlighted concerns about funding approaches and the financial burden shouldered by informal sector workers.

The World Bank pointed out that integrating SHIF into an economy largely made up of informal employment could lead to funding difficulties. It estimated that the current scheme might only collect Ksh67 billion annually instead of the targeted Ksh157 billion. The report also suggested that low-wage earners in the formal sector should be exempt from SHIF contributions, while urging a focus on formal sector workers to fund healthcare effectively.

Additionally, the Bank recommended that the government subsidize contributions for informal and vulnerable workers to ensure fair access to essential healthcare services, promoting greater equity in the system. As the government moves forward with the Lipa Polepole plan, these recommendations from the World Bank will likely remain at the forefront of discussions regarding SHIF’s future and its viability for Kenyans.

President Ruto’s introduction of the Lipa Polepole payment method aims to improve healthcare access for informal sector workers in Kenya, allowing for installment-based premium payments. Nonetheless, the concerns raised by the World Bank regarding funding challenges associated with the Social Health Insurance Fund could affect the program’s implementation. Encouragingly, the collaborative effort among various ministries provides a hopeful avenue for practical solutions, although further adjustments to the healthcare funding model may be necessary going forward.

Original Source: www.kenyans.co.ke