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How Defaulting NHIF Payments Will Cost Employers

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Employers are now walking on a tightrope after the National Assembly made changes to National Hospital Insurance Fund Act to protect employees.

Members of Parliament amended the NHIF Act of 1998 to compel employers to compensate their employees for paying their medical bills using their own money, due to suspension of the NHIF cover for non-remittance by the employer.

The NHIF Amendment Bill 2021 also requires employers to pay penalties for delayed or failure to send the NHIF contributions.

“That employer shall be liable to pay the costs incurred by the employee when seeking treatment from a contracted healthcare provider during the period when the contribution is due,” NHIF Amendment Bill 2021 reads.

NHIF normally suspends its medical services to employees whose employers have continuously failed to remit their contributions to the cover, making it hard for workers to seek medical health.

The new amendment now seeks to save many employees in the public sector where defaulting on NHIF contributions has been on the rise, especially in the public universities and county governments.