By Adedapo Adesanya
The National Health Insurance Authority (NHIA) has announced an increase in healthcare costs, with a 60 per cent rise in capitation and a 40 per cent review in Fee-For-Service (FFS) fees.
Capitation is the payment arrangement paid to a healthcare provider for each enrolled person assigned for a period of time while the FFS fee is a payment model where providers are paid separately for each service they perform, such as consultations, procedures, tests, and treatments.
The announcement was made at the NHIA’s critical stakeholders’ meeting on the new tariffs, to ensure sustainability of the health insurance scheme and improve service delivery, on Wednesday in Abuja.
In his address, Mr Kelechi Ohiri, Director General, NHIA, said that access to affordable and quality healthcare by the enrollee remained a top priority of the authority.
Mr Ohiri urged stakeholders to put the interest of Nigerians on top of all other considerations.
“The NHIA cited several reasons for the adjustments. Primarily, the rising cost of healthcare delivery and the need to maintain quality care provided to beneficiaries have driven this decision.
”The capitation system, which involves a fixed amount of money per patient paid in advance for a defined period, has seen a substantial increase.
“This is intended to provide healthcare providers with more resources to manage patient care effectively,” he said.
Mr Ohiri said that healthcare providers were expected to benefit from the increased funding, which should enable them to offer better services and reduce the financial strain caused by rising operational costs.
However, he said that the increase in fees may place a higher financial burden on patients and employers who contributed to the health insurance scheme.
He said, “NHIA does not take its stakeholders for granted. We always appreciate their collaboration within the context of achieving the goal of Universal Health Coverage.”
In addition, Mr Aminu Magashi, Coordinator of the Africa Health Budget Network (AHBN), said the announcement marked a significant shift in the cost structure of health insurance in the country.
Magashi, also a health economist expert said that while it aimed at improving healthcare services, it also highlighted the challenges of balancing affordability with quality care.
He said that the NHIA should be committed to monitoring the impact of the changes and make further adjustments as necessary.
Mr Magashi said that NHIA should ensure that these increases were vital for maintaining a robust healthcare system that could meet the needs of the population.
Aduragbemi Omiyale