Teachers’ Minet medical cover on shaky ground due to lack of ‘value for money’
Lawmakers are now contemplating asking the National Treasury to withhold billions of shillings meant for teachers’ medical insurance scheme following concerns that the scheme was not beneficial them.
The MPs who sit on the National Assembly Committee on Education vowed to stop the National Treasury to wire the Sh53 billion to Minet Insurance Brokers should they establish that there was no value for money in the tender.
The MPs expressed concern over the manner in which the insurance firm has been handling teachers seeking treatment despite pocketing billons of shillings in premium.
The move comes at a time when the Teachers Service Commission (TSC) is set to renew the contract with Minet Insurance Brokers for the second phase of the contract that is supposed to run for three years from 2022 to 2025.
In the first-year, the contract ran from December 1, 2022 to November 30, 2023 at a cost of Sh14.890, 217, 547, in the second year the contract rans from December 1, 2023 to November 30, 2024 where the insurance firm is expected to pocket Sh17, 931,261, 057 while in the third year which is expected to commence on December 1, 2024 to run up to November 30, 2025 the insurer will pocket Sh20,668,82,666.
“As a committee, we will sit and if we find out that there was no value for money, we will advise the treasury not to remit money,” Tinderet MP Julius Melly, who is the committee chairperson said.
He added: “As a committee what will inform our decision and the sanctions that we will take will be based on our findings once we meet these firms.”
The legislators also fined Medical administrators Kenya (MAKL) Sh500 000 for snubbing the committee sittings.
The firm was supposed to appear before the committee alongside Minet Insurance Brokers who also did not appear though they sent apologies. Clause 191 of the standing orders states that where a witness summoned does not appear, or appears but fails to satisfy the House or committee, the House or Committee may impose upon the witness a fine not exceeding five hundred thousand shillings, having regard to the witness’ condition in life and all the circumstances of the case.
“This issue of them absconding is a testimony of how bad these insurers are treating our teachers. To this end, we are fining these institutions Sh500 000. They should pay and submit a receipt to the clerk of the National Assembly before they appear before us again on December 19,” said Melly.