NHIA Introduces a 40% Fee-for-Service Increase in Nigeria and Raises Health Insurance Capitation by 60%

Dr. Kelechi Ohiri, NHIA's Director General. (Image Credit; News Central TV)

The Fee-For-Service (FFS) prices will be adjusted by 40%, while capitation will increase by 60%, according to the National Health Insurance Authority (NHIA).

The story was originally reported by the Nigerian News Agency.

The decision was made public during an important stakeholders’ meeting about the new tariffs that took place in Abuja, according to the report. The action intends to improve service delivery and maintain the health insurance programme. 

The NHIA’s Director General, Dr. Kelechi Ohiri, underlined that the authority’s primary goal is to offer registrants access to high-quality, reasonably priced healthcare. Amid these developments, he asked stakeholders to put Nigerians’ interests first.

The increase in fees and capitation

“The NHIA cites several reasons for the adjustments. The changes are motivated by rising healthcare delivery costs and the need to maintain the quality of treatment offered to beneficiaries,” Ohiri stated.

A significant increase will be made to the capitation system, which entails paying a certain sum per patient for a predetermined length of time. This will give healthcare practitioners additional resources to efficiently manage patient care. 

Ohiri emphasized that the extra financing ought to help healthcare providers provide better services and lessen the financial burden brought on by growing operating expenses.

He did admit, though, that this increase in fees would put a greater financial strain on those who pay into the health insurance programme, including businesses and patients.

“There has been a significant expansion in the capitation system, which entails a fixed amount of money per patient paid in advance for a specified period of time.”

“This is meant to give healthcare professionals additional tools to efficiently manage patient care.” 

Dr Aminu Magashi, Coordinator of the Africa Health Budget Network (AHBN), stated that this news represents a significant shift in the cost structure of health insurance in Nigeria.  

Although the goal is to enhance healthcare services, it also draws attention to the difficulties in striking a balance between cost and quality of care.

To maintain a strong healthcare system that satisfies the demands of the populace, Magashi emphasized the significance of NHIA’s commitment to tracking the effects of these improvements and making additional adjustments as needed.

The increased rates have elicited conflicting responses from Nigerians.

Some recognize that the rise is necessary to guarantee that people will always have access to high-quality healthcare, but others worry that it will put a financial burden on families and companies. 

Things to note

The payments made to healthcare professionals according to the services they perform are known as fee-for-service (FFS) fees.

FFS entails paying for each medical service or procedure that a patient receives, as opposed to capitation, which pays providers a fixed sum per patient.

This approach encourages comprehensive and customized patient care by guaranteeing that medical professionals receive payment for the precise services they perform.

This event comes after NHIA’s recent attempts to examine drug prices in response to notable medical inflation in Nigeria.

The authority’s overarching plan is to increase coverage nationwide, improve service quality, and increase access to and affordability of healthcare. 

In order to achieve Universal Health Coverage (UHC) for all Nigerians, Dr. Ohiri reaffirmed NHIA’s commitment to increasing enrolment in the national health insurance system and collaborating with partners.

NHIA seeks to assist vulnerable populations by modifying qualifying requirements and utilising special funds to guarantee they receive essential healthcare benefits.

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