NHIA increases healthcare payments to enhance service delivery

The National Health Insurance Authority (NHIA) has substantially increased capitation and fee-for-service payments to healthcare providers.

This adjustment follows a previous increase six months ago, which saw capitation fees rise by 60% and fee-for-service payments by 40% as an interim measure to stabilise the sector.

The newly approved rates, endorsed by the Minister for Health and Social Welfare, Professor Muhammad Ali Pate, are based on a comprehensive actuarial review and will come into effect in April 2025.

Under the revised structure, capitation payments—fixed annual fees paid to healthcare providers per enrolled patient—have increased by 93% compared to December 2023 rates. Likewise, fee-for-service payments, which reimburse providers for specific medical procedures, have risen by 378% compared to 2023 rates.

Announcing the changes at a stakeholders’ meeting in Abuja, NHIA Director-General, Dr Kelechi Ohiri, emphasised that the adjustments aim to align healthcare payments with rising medical costs and promote better service delivery.

He assured stakeholders that the increases are backed by actuarial analysis, ensuring fairness, sustainability, and improved patient care.

“With the increase in premiums, we expect that the quality of care for enrollees will be improved and sustained. Providers are expected to deliver high-quality care at no additional cost to enrollees, and NHIA will ensure strict enforcement,” he stated.

Stakeholders at the meeting, including representatives from Health Maintenance Organisations (HMOs), Healthcare Provider Associations, and Federal Tertiary Hospitals, commended the NHIA for this bold step. They expressed their commitment to ensuring that health insurance enrollees experience the benefits of these reforms.

By Ifeoma Nwovu