NAIROBI, Kenya, Jan 25 – Resolution Health East Africa will hike premiums next month in response to rising hospital fees.
Resolution Health Chief Executive Officer Peter Nduati said its premiums should increase by at least 14 percent as a result of consultation fees in most hospitals going up by 15 to 25 percent.
“You have providers who have gone as far as 25 percent and for that reason we have also revised our premium rates from 1st of February,” he said.
This is the first time since 2009 that Resolution Health has had to raise premiums, which will also affect co-payments.
Co-payments at Nairobi Hospital and Aga Khan Hospital will increase to Sh500, while co-payments at Gertrudes Children’s Hospital will be Sh200.
Nduati said the upward premium reviews will primarily affect products catering to upper middle class clients while costs for Resolution’s lower-end products have not risen giving members the option of choosing basic coverage at more affordable prices.
“The lower-end premiums haven’t changed; in fact some of them have gone lower. As low as Sh1,000 a month you can get a quality insurance product. Our Premium Plus product, which is targeted at upper middle class, pricing has gone up by about 23 percent,” he said.
Nduati added that premiums have on average gone up by 25 percent in the industry, which was expected as trickling effects of high inflation and a weak shilling set in at the turn of the year.
As far as growth in business, Nduati remained optimistic with the firm posting the highest membership and premium growth percentages in its history, though the CEO was not keen on divulging exact figures until books are closed.
Resolution Health has taken steps to enhance its medical insurance products this year announcing cover for pre-existing conditions such as diabetes, asthma or heart disease.
Other benefits include dental illness and international cover offered in some of its corporate plans, while wellness checks will be enhanced to cover mammograms, Pap smear tests, prostate cancer screening and nutritional consultation.
The insurance provider has its sights on expanding its branch network countrywide with projects for Nyeri, Eldoret and Thika lined up for this year.
Last year Resolution Health opened branches in Nakuru, Meru and two in Nairobi.