Chronic disease management programs on health insurance profitability in Kenya

Abstract

Chronic diseases have been a real problem in Kenya and in the entire world. Most of these diseases are non-communicable and affect the population towards old age. This chronic diseases if not well managed may lead to acute illnesses that are costly to cure and may lead to costly admission care. In the modern world where insurance is becoming popular, a lot of these costs are transferred to the health insurance providers. For the population that is receiving pension benefits. These costs end up reducing the expected utility for these funds received. This paper has been written in this light and is aimed at showing the significance of chronic disease management in increasing profitability for health insurance providers and improving pension's utility for beneficiaries. This has been done through predicting expected costs for chronic disease management programs for the expected population at risk by use of a predictive model. This hence enables health insurance providers and pension sponsors to load for justifiable risk amount in the premiums charged for the respective benefits. This is alongside helping pensioners appreciate their pension benefits more as they derive more utility from them.