NAIROBI, Kenya, Feb 6 – All medical insurers have from, 5th February 2020, suspended Nairobi Women’s Hospital from their list of accredited service providers, a statement from Association of Kenya Insurance has said.
This follows recent accusations made in the media against the institution on inflating costs.
AKI says the suspension will remain in force pending thorough review of quality and cost of the hospital’s services.
The suspension will not affect insured customers already admitted in the hospital. Billing and settlement of expenses incurred by these customers will not be affected.
“This decision was arrived at after a meeting of medical insurance companies’ CEOs noted that there are several administrative issues concerning the hospital which disadvantage the insured customers. This is contrary to the interest of medical insurers which is to ensure that customers get the best services at competitive rates,” AKI says.
Medical Insurance is the second largest class of short-term insurance business, after Motor insurance, in terms of gross written premium. However, the business has been struggling over the years.
In 2018, medical insurance business made a loss of Sh1.1 billion.
The medical environment has many players including doctors, pharmacists, laboratories, imaging services among others. For medical insurance to make sense, each of these players has to give the best service at the most reasonable rates. This is however far from the reality on the ground.
The Association of Kenya Insurers will engage with the medical service providers through their respective associations to address most, if not all the issues that are affecting medical insurance business.