The National Health Insurance Fund has said it will not renew a medical scheme contract for the Kenya Association of Retired Officers.
The members of the scheme were retired civil servants.
In a letter dated January 9, the national health insurer also asked the association to suspend recruitment of new members until they review the terms of the contract.
The association entered into a one year contract with NHIF on January 10, 2018.
It expired on January 9.
In the letter signed by CEO Nicodemus Odongo, the NHIF said it will only renew the contract if the association abides by the recommendations suggested in the letter.
“Following the experience of implementing the scheme, it is critical that a review meeting for the scheme is held prior to renewal of the scheme,” Odongo said in the letter.
He added that this will inform the renewal terms for the cover for the subsequent year.
“The contract may be renewed upon completion of the review and negotiations on renewal terms. Therefore you are advised not to make any additional payments until this process is complete,” he said.
He said by nature of the agreement with the association under the scheme, additional members were allowed to join and make payments for a period of one year.
These members he said are the only ones who will continue to access services until the expiry of their cover period.
In 2013, the national insurer accused Meridian Medical Centre of breaching an agreement contract.
In response to the suit filed against it by the medical centre, NHIF said it terminated the contract because of misrepresentation of facts on the part of Meridian.