The Community Health Fund (CHF) was introduced by the Government of Tanzania in 2001; where each Council was required to establish a CHF Fund. The CHF is a government (Council) run pre-payment fund (health insurance scheme) where the council population was encouraged to proactive join with the payment of a contribution amount in return for cost coverage for health care costs as defined in a benefit package covered by CHF. An evaluation of the operation of this fund has shown that its implementation faces a variety of challenges that arise from problems with its design and operating system; as a result, there have been different achievements between one and the other councils.
Following these challenges, the Government aims to make improvements in three areas to strengthen the operation of the Community Health Fund. These areas are: management and operation (governance) enrollment of members, and benefit package).
One of the priorities of the government is to ensure that all citizens receive treatment through health insurance systems, especially those in the informal sector in order to achieve the goal of universal health coverage, as well as to manage the collection, access to quality services, low cost and Improve community health services.
In order to achieve this the Office of the Presidency – (PORALG) in collaboration with the Ministry of Health, Social Development, Gender, Elderly and Children (MOHCDGEC) has made various improvements by introducing a new improved CHF system, implemented through 'Number 1 Health Fund Improvement Document' Community (CHF / TIKA) aims to bring about efficiency and effectiveness in the coordination and delivery of the Community Health fund to eventually achieve National goals. Therefore, CHF Iliyoboreshwa is a reformed and improved model of the CHF, operated by the GoT, as a non-profit scheme for protecting citizens against high health care costs, and presently being implemented in the whole of mainland Tanzania.