Community Health Plan (CHeaP Kenya): Notes from a Visit 1-2 July 2002

This paper describes the ‘Community Health Plan’ (CHeaP) of the microfinance organization, CENT, based in Kisumu Kenya.

The paper states that CHeaP:

• Aimed to help people cope with the many health issues in their lives;
• Had an entirely social mission;
• Did not do well despite receiving an enthusiastic response, as it was fraught with inefficiencies and disorganization.

The paper presents the following information about CHeaP:

• Eligibility criteria, the extent and duration of cover, exclusions, limitations, mode of delivery;
• The pricing, process of enrolment/renewal, the people involved and the promotion;
• The prevention activities that it undertakes;
• The institutional structure, management and governance, partnerships, client expectations and risk management.

The paper concludes by listing lessons that CHeaP has learned. These include:

• Effective administration of a credit product does not qualify a microfinance institution (MFI) to deliver a health insurance product;
• There must be protection of the MFI capital. CHeaP capital was quickly depleted in covering health care financing claims;
• Institutions need to follow the full development process and not just rollout with a concept;
• The product and operations need to support both the community as well as the institution;
• While health insurance products generate significant interest, this does not necessarily translate into actual demand.