October 2017 BusinessDaily; A new product allowing employees aged below 60 years pre-fund their retirement healthcare insurance has been launched.
Enwealth Financial Services unveiled the savings product in partnership with APA Insurance and Apollo Asset Management on Thursday.
Apollo Group CEO Ashok Shah said Apollo Asset Management will provide fund management services while APA will provide health insurance solutions on retirement.
Enwealth chief executive Officer (CEO) Simon Wafubwa said the medical cover callled Anaya Post-Retirement Healthcare Fund was crafted in response to a trend analysis report backed by the Retirement Benefits Authority (RBA).
It showed health expenditure had grown to Sh73.2 billion by last year while the percentage of admissions for people over 65 years stood at 34 per cent in 2013 compared to 25 per cent a decade ago. Early this year, a similar medical cover was launched by Alexander Forbes.
Mr Wafubwa said the new product attracts good returns guaranteeing growth for a worker’s income while cushioning them from high medical bills.
“The product is designed with levels of flexibility like bronze, silver, gold, platinum that allow members choice of benefits class based on affordability and desired level of benefits and is open to both corporates and individuals,” he said.
RBA chief executive Edward Odundo hailed Treasury’s amendments to the law in this year’s budget that enabled workers to start saving for medical insurance before retirement.
“This ensures that they are better prepared to comfortably meet their healthcare needs and access hospitals of their choice for chronic, pre-existing and high risk conditions,” he said.
With contributions of at least Sh2,000 per monthly, members of the medical cover will have access to services from over 200 hospitals, locally and abroad.
This will cover all diseases including high risk pre-existing conditions not ordinarily covered by conventional health insurance schemes for senior citizens such as cancer, diabetes and high blood pressure.