Minimising Medical Expenses Through Health Insurance

Health insurance is a key pillar in ensuring that Nigerians have access to quality healthcare services without financial burden, hence the need for the government at all levels to make it compulsory for the citizens, stakeholders have said.

According to World Bank report, Nigeria’s out-of-pocket medical expenditure, as a share of current health expenditure, was at level of 76.6 per cent in 2018, down from 77.2 per cent previous year. Stakeholders have said this has made a lot of Nigerians to face catastrophe and become impoverished.

The only solution to this catastrophe is health insurance, the chairman of Public Health Sustainable Advocacy Initiative, (PHSAI), Barrister Ayo Adebusoye, told LEADERSHIP Weekend, adding that, most Health Maintenance Organisations (HMOs) offer a health package for a year with just N12,000 to N15,000 for individual and N35,000 and above for family (wife, husband and children).

However, he said, one can spend more than N300,000 or more for the same medical services if you are not under HMO, advising Nigerians to adopt health insurance to lower their medical expenses.
In Lagos state for instance, Adebusoye said, the state government, through the Lagos State Health Management Agency (LASHMA) launched Ilera Eko, meaning to ‘pay small, small’, which allows monthly payment. “So if a family do not have N40,000 to pay the health insurance premium at once, they can pay per month, which is cheaper than walking into a hospital without health insurance to access healthcare services,” he explained.

With this plan, Adebusoye said, it is saddened to know that a lot of Lagosians are reluctant to enrol into the state health insurance scheme. He said, “we cannot fully move forward without the health insurance scheme. The state health insurance scheme, together with the national health insurance scheme must be made compulsory because out of pocket expenses for health services can never be the ideal way of financing health sector.”

For Nigerians who cannot afford it, the chairman advised that, aside government’s one per cent consolidated revenue fund, another means to raise funds to fund the Basic Health Care Provision Fund (BHCPF), is for government to tax companies like telecommunications. “We have over 100million subscribers that make calls every day. So, we can imagine how much we can generate from there. Government can also get money by taxing alcohol and cigarette companies, to finance health insurance for the less vulnerable group in the society,” he recommended.

The managing director, Ultimate Health Management Services, Lekan Ewenla, on his part, also advocated that, health inasurance should be made compulsory.

Ewenla disclosed that the law to make health insurance compulsory for all Nigerians will soon be passed into law by the 9th assembly.

“The law is awaiting the endorsement of the president of Nigeria, once that is done, health insurance will be mandatory for all Nigerians. The present leadership of NHIS is working assiduously to put in place the framework that will ensure and enhance compliance, in preparation for the passage of the law,” he added.