Kwara increases health insurance premiums

Kwara State Health Insurance Agency on Friday announced an upward review of the health insurance premiums among the enrollees in the state.

The action is effective from December 1, 2024.

According to the government, the move is “to accommodate the rising costs of drugs, consumables, and provider payouts to sustain high-quality healthcare services.”

In a chat with journalists in Ilorin, the agency’s executive secretary, Dr. Olubunmi Jetawo-Winter, said that the number of enrollees had increased to 70,000 in the last two months due to inflation among the people.

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Announcing the new rates, Jatawo-Winter said the informal sector premium is now N15,500 per person yearly from N6,000, while that of the formal sector goes for N18,000 from N9,000.

According to her, the family package covering six members for the informal sector is now N75,000 against N87,000 for the same package in the formal sector.

She described the increment as a difficult decision for the government adding that there is a need to adjust the old premiums over rising costs.

Jetawo-Winter, who said that reviews are supposed to be done every three years, said the last review done in the state was seven years ago since the initial analysis to commence implementation.

She also said that the adjustments had been considered and implemented in most states long before now, especially after the COVID pandemic.

She said: “Kogi state informal sector plan was already at a rate of N15,000 since the last four years, Ondo state’s individual plan is N18,000, also implemented years ago.

“The NHIA just increased all their drug and consumable tariffs and capitation to their providers. The pricing of these tariffs is derived from premiums, paid by enrolled beneficiaries.

“Kwara State is the last to adjust tariffs nationwide and remains one of the most affordable and reliable on access to healthcare. Other states continue to review even after their already increased premiums.

“By paying a flat premium, residents can avoid the financial stress of sourcing funds for unexpected medical expenses for a full year, and renewable afterward.

“This covers registration, consultations, investigations, admissions, treatments, surgeries, drugs and consumables among others as outlined in the benefits package.

“With the new premiums, the scheme is still heavily subsidised giving residents the opportunity to still enjoy a significant reduction in healthcare costs compared to paying out-of-pocket expenditures for medical services”.

Jatawo-Winter said the government understands the challenges the change may bring but expressed confidence that it will guarantee sustainable and quality healthcare for all.

“The Kwara State Health Insurance Agency asks for your cooperation and understanding during this transition period. We remain committed to our promise of providing affordable, accessible, and quality healthcare for every resident of Kwara,” she said.