The Kenyan government says it will review the current framework for post-retirement medical insurance schemes to make contributions to them mandatory by members and sponsors.

The goal is to sustain access to healthcare services by retirees.

The plan is part of proposals contained in the draft National Retirement Benefits Policy by the Retirement Benefits Authority (RBA. The draft was released for public feedback last week, according to a report by Business Daily Africa.

A post-retirement medical scheme can be set up as a standalone entity, as an extension to an existing pension fund and or as an insurance fund.

Post-retirement medical schemes allow individuals to make contributions while in employment. But medical insurance benefits become accessible when they retire and are no longer part of the medical cover provided by employers. At present, post-retirement medical insurance contributions are voluntary.

Explaining the rationale for post-retirement medical schemes, the draft reads, “Upon attaining retirement, most members of schemes lose medical insurance offered by their previous employers. Medical insurance providers are often reluctant to provide medical insurance to retirees, or if they do provide, the premium is often expensive.”

Under the mandatory contribution proposal, employers would be required to match the contributions of employees to post-retirement medical schemes.

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