Only 5 per cent Ugandans access medical insurance, says report

Kampala. Uptake of medical insurance in Uganda stands at only 5 per cent, research findings indicate.
A research commissioned by Insurance Institute of Uganda and conducted by Makerere University Professor Robert Baraza, found that only 5 per cent of Ugandans take up health insurance.

“We were looking at the factors that affect enrolment of employees and what makes them not take up insurance products. Uptake of health insurance is 5 per cent so this is the premise of our research,” he said.
Ugandans, Mr Baraza said, majorly rely on out of pocket payments which cover about 40 per cent of the money put aside for health care.

This has greatly hindered the uptake of medical insurance which is also credited for being the greatest driver of insurance in Uganda.
Registering Shs52.7b in gross written premiums, health insurance, he said is majorly undertaken by companies who pay for their employees.

“In our country, when we talk of private commercial health insurance, we are talking of corporate employees and their employers, in this country, much of it is employers are paying and employees are not paying,” he said.

Data on how many individuals privately pay for medical insurance is not readily available.
The people who were interviewed according to the research, blamed the high cost as the main deterrent to health insurance uptake.
Additionally, cost-sharing, which ranges between 10,000 and Shs30,000 for some companies was another deterrent to health insurance uptake.

According to Mr Baraza, lack of a National Health Insurance Scheme has also suppressed uptake in the sector.
The National Health Insurance Scheme, which seeks to avail universal health cover for all Ugandans is still in Parliament.
Uganda currently has six Health Management Organisations (HMO) which contribute about Shs52.7b in premiums.

However, findings also pinned the HMOs for inflating medical bills by ordering for unnecessary tests and medicine.
Also, ignorance of how insurance works and benefits of different policies, have also affected penetration.

Recommendations

According to Mr Baraza, insurers must invest in sensitizing customers, explain one policy at a time to avoid confusion and improve trust by service providers.
In addition, Mr Solomon Lubondo, the Brokers’ Association chairperson, tasked insurers to transition from the corporate clients to target small scale businesses.
He also requested the regulator to make laws flexible to allow innovation that will fit Uganda’s economy.

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