Government Introduces New SHA Payment Method
President Ruto has launched the Lipa Polepole payment scheme for Social Health Authority contributions, allowing informal sector workers to pay premiums in installments. The initiative aims to tackle issues of erratic payments and enhance healthcare access, amid recent concerns highlighted by the World Bank regarding the sustainability of the Social Health Insurance Fund.
In a significant move aimed at enhancing healthcare accessibility for Kenyans, President William Ruto has unveiled a new payment mechanism called the Lipa Polepole scheme. This initiative targets those working in the informal sector, allowing them to make contributions to the Social Health Authority (SHA) in manageable installments. This announcement was made during the 62nd Madaraka Day celebrations in Homa Bay, highlighting the government’s focus on inclusivity in health financing.
President Ruto emphasized the dire need to tackle issues like irregular premium payments among informal sector workers. “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,” he stated. The approach aims to empower families by letting them choose how they want to pay their premiums.
The president further explained that the new payment plan makes it feasible for Kenyans to remit their contributions based on their financial situations. “This initiative will enable Kenyans to remit their annual SHA contributions through flexible, manageable installments, whether monthly, weekly, or even daily, based on their financial abilities,” Ruto added. The scheme is made possible through collaborations among the Ministries of Health, Cooperatives, financial institutions, and mobile network operators, supported by the Hustler Fund.
As for the SHA, it has reportedly registered 50,000 users and is now covering the treatment costs for approximately 4.5 million Kenyans. This is a considerable step, but recent feedback has pointed towards the need for further adjustments in the country’s Universal Health Coverage (UHC) framework. Just last week, the World Bank urged the Kenyan government to reassess the implementation strategy of the Social Health Insurance Fund (SHIF).
In a report released on May 27, the World Bank highlighted the financial strain on citizens, particularly those in the informal sector. It cautioned that the SHIF, which was originally designed to fund universal health coverage, may face serious sustainability issues given the economic dynamics of informal employment. The Bank’s analysis projected that the scheme’s anticipated annual revenue would fall short, estimating only Ksh67 billion, significantly below the Ksh157 billion target.
Moreover, the World Bank suggested that low-wage earners in the formal sector should be exempt from SHIF contributions. It also recommended that the government focus on collecting contributions from formal sector jobs while offsetting costs for informal workers and at-risk populations to foster fairer access to healthcare services in Kenya.
In summary, the Kenyan government is taking significant strides to improve healthcare accessibility through the introduction of the Lipa Polepole initiative for SHA contributions. This new payment model promises flexibility and is directed toward the country’s informal workers. However, concerns linger about the SHIF’s viability based on current funding projections and the impacts on low-income earners. The interplay between financing models and health service accessibility remains a critical issue as discussions unfold.
Original Source: www.kenyans.co.ke
