Healthcare is set to become more affordable to millions of Kenyans following a move by the national health insurer to revise rebates to hospitals upwards.

The National Health Insurance Fund (NHIF) has increased rebates-the amount it pays to service providers on behalf of its members daily -for 119 private hospitals countrywide, effectively reducing the direct costs chargeable by the service providers.

The revisions which range between Sh400 to Sh1,100 mean a substantial cost burden has been lifted off the shoulders of NHIF members seeking treatment. This follows similar increments for public and mission hospitals.

Health care providers have in the past been automatically raising their charges when NHIF rebates are adjusted upwards, charging patients the same amount despite the reprieve.

NHIF says it has been strengthening mechanisms to curb the trend by entering into contractual agreement with accredited hospitals willing to move into comprehensive services.

Once this is achieved, NHIF members will get full treatment without paying more. NHIF covers 1.6 million Kenyans, with another 400,000 covered under private medical insurance.

This figure, however, expands to about 9.5 million because NHIF also covers dependants, meaning about 30 per cent of Kenyans are covered by medical insurance, leaving 70 per cent of the population out.

"In revising the rebates, we hope to provide fully comprehensive services as we work with hospitals with the best services and which are willing to go the same direction, "said Stephen Wangaji, the public relations and marketing manager at NHIF.

In a Kenya Gazette Supplement dated February 22, 2008 ,but published last week, rebates for another 210 hospitals remain unchanged.

Members can enjoy in-patient health services from at least 400 hospitals across the country that have partnered with the NHIF.

It is understood that hospitals which were not considered for the revisions had not yet entered into contracts with NHIF, some having rejected the deal.

NHIF only covers inpatient costs, restricting its brief to helping Kenyans reduce the amount of out of pocket medical expenses.

The relationship with the hospital is based on the services that a member can enjoy.

In the first category involving government hospitals for instance, members enjoy comprehensive medical cover, including maternity and surgery.

In the category of the mission and private hospitals, contributors enjoy comprehensive medical cover but where surgery is required, NHIF shares the cost with the member.

The other category comprises private hospitals where NHIF pays specified daily benefits of between Sh800 to Sh2, 200 a day.

However, the impact of the higher rebates will not be felt by 70 per cent of Kenyans who pay their medical bills out-of-pocket -a method that is seen to be a burden to many low-income earners.

Health insurance has for a long time been beyond the reach of Kenya's majority poor while insurance companies have continued to shun the elderly because they are regarded as being at a high risk of contracting diseases.

This comes at a time when private service providers are mulling over a new financing plan to make healthcare affordable to millions of Kenyans in the low income bracket.

Promoters say this could reduce the cost of healthcare by up to 40 per cent and ensure that insurance companies do not exploit low income earners.

It involves a commitment from the Government to allow parallel importation of generic drugs to reduce the cost of medicine and is hinged on citizens becoming paid-up members of a hospital in their locality from where they will access health services.