This archive report was first published on 22 June 2020.
Published on June 22, 2020, a dispute has erupted between Jubilee Health Insurance Limited and Nairobi Hospital over multimillion-shilling claims.
Jubilee, the country's largest medical underwriter, has been settling claims running into Sh1 billion per year at Nairobi Hospital.
However, the hospital claims that Jubilee has not settled a Sh357 million bill that has been outstanding for three years.
The insurer, on the other hand, says the disputed amount is only Sh80 million and which the hospital is unable to justify.
As a result, Jubilee has been forced to issue a statement informing its clients of a service interruption at the hospital.
The insurer said, 'We would like to notify our esteemed clients that we are currently experiencing service interruption at The Nairobi Hospital,' adding that the dispute arose from the hospital's failure to provide justification for some bills adding up to about Sh80 million.
The standoff is the latest between an insurer and a hospital in the medical business, which has one of the highest incidences of fraud, including overcharging and unnecessary procedures.
Medical insurance had the second-highest loss ratio at 74.4 percent in the quarter ended December 2019, according to statistics from the Insurance Regulatory Authority (IRA).
