The lack of healthcare price controls financially exposes people without insurance coverage, forcing them to spend significant amounts on their health. Health insurance schemes are gaining traction in countries like Rwanda, easing the healthcare burden. However, countries like Kenya, Tanzania, and Uganda have faced difficulties in implementing national health insurance schemes.
Easing the healthcare burden
According to a new report, the lack of government-imposed price controls for patient healthcare expenses places a financial burden on low-income households in East Africa. The survey titled Financing Primary Healthcare in East Africa shows that out-of-pocket payments (OOP) are the main form of transactions in East Africa.
This trend represents a significant financial burden for families and poor households due to the lack of healthcare price controls. The survey conducted by Medic East Africa and Medlab East Africa shows that among East African states, Uganda has the highest out-of-pocket healthcare expenses in the region, at 38 %. Tanzania comes second with 34%, followed by Kenya with 24 %. Rwanda leads the area with the least out-of-pocket expenses for medication, at 11.7 %.
Reports note that despite the high expenses, health insurance schemes are gaining more traction in countries like Rwanda, helping to ease the healthcare burden.
Lack of healthcare price controls
The report also notes that countries like Kenya, Tanzania, and Uganda face difficulties in implementing national health insurance schemes. « Kenya’s efforts to replace the National Health Insurance Fund with the Social Health Insurance Fund (SHIF) have met opposition from the Medical Practitioners, Pharmacists, and Dentists Union ».
According to the Kenya Demographic and Health Survey (KDHS) 2022, the latest report comprehensively covering the health sector in Kenya, only one in four Kenyans has some form of health insurance, with the country’s health insurance coverage at 20 %.
The government aims to have 80 % of the population enrolled in health insurance coverage by 2030. With 15.4 million members, the latest data shows that the NHIF has 8.8 million inactive members, further forcing them to pay for medical services out of pocket. This number could increase due to socio-economic factors such as the high cost of treatments and medications, income, age, and household education level.
Reducing 0ut-of-pocket expenses
Governments must reduce out-of-pocket expenses by creating a universal fund collected through individual contributions and taxes to meet local healthcare needs.
East Africa’s healthcare system currently suffers from a severe shortage of healthcare professionals, with only an average of 0.2 doctors per 1,000 people. This lack of personnel is exacerbated by an increase in non-communicable diseases, which are now one of the leading causes of death in the region.
The situation is further complicated by high rates of infant and maternal mortality. East Africa does not meet the United Nations Sustainable Development Goal for good health and well-being, which advocates for a significant reduction in under-five mortality and improved maternal healthcare. Currently, access to quality healthcare services remains limited, with only 34 % of the population having sufficient coverage.
Investing in healthcare infrastructure
Increased investment in healthcare infrastructure is essential to strengthening the system, with digital technologies such as telemedicine playing a growing role. Telemedicine helps alleviate pressure on medical staff and improves access to care for people facing financial or geographical barriers.
Innovation and strong health partnerships are essential for countries to achieve the United Nations’ health goals by 2030. Kenya’s growing importance in healthcare is evident, particularly in its increasing role in clinical trials and vaccine production.
The country’s recent partnership with the International Vaccine Institute will facilitate technology transfers for essential vaccines. Additional investments are being made in national vaccine production capacities.
