National Health Insurance Authority (NHIA) recently released a statement informing the public about the rise in healthcare expenses. They stated that capitation fees would be increased by 60% and Fee-for-Service (FFS) fees would see a 40% adjustment. As reported, the decision was made public at a crucial meeting with key individuals regarding new Tariffs in Abuja. The goal of this action is to support the health insurance program and improve the quality of services provided.
Also, NHIA’s Director General, Dr. Kelechi Ohiri, stressed the importance of ensuring that affordable, high-quality healthcare is accessible to all enrollees. He called on stakeholders to ensure to always put the interests of Nigerians first, especially during times of change. Ohiri further explained that the NHIA has pointed out numerous factors behind the changes, attributing these factors to the rising expenses of healthcare services and the importance of upholding the standard of care given to beneficiaries.
With more funding, healthcare providers would enhance services.
Healthcare providers will see a significant increase in resources to manage patient care effectively under the capitation system, where a fixed amount per patient is prepaid for a specific period of time. Ohiri emphasized that with the additional funding, Healthcare Providers would be able to enhance the quality of services provided and ease the burden of increasing operational expenses. Nevertheless, he recognized that this increase in fees could potentially place a greater financial strain on both patients and employers participating in the health insurance program.
There has been a significant rise in the capitation system, where a predetermined payment is made in advance for each patient over a specific time frame. The purpose of this is to offer healthcare providers additional tools for efficiently overseeing patient care. The Africa Health Budget Network (AHBN) Coordinator, Dr. Aminu Magashi, stated that this announcement represents a significant change in the pricing of healthcare coverage in Nigeria. Enhancing healthcare services comes with the task of effectively managing the delicate balance between cost and quality of care.
Opinions among Nig. are divided on the recently implemented tariffs.
Magashi highlighted the significance of NHIA’s dedication to overseeing the effects of these modifications and implementing additional changes as needed to uphold a strong healthcare system that caters to the needs of the people. Opinions among Nigerians are divided on the recently implemented tariffs. Although some people understand the importance of the raise in order to maintain access to high-quality healthcare, there are others who worry about the financial burden it may place on families and businesses.
Fee-for-Service (FFS) fees are the monetary compensation given to healthcare providers for the services they provide. Capitation and Fee-for-Service are two different payment models in healthcare. While capitation involves providers receiving a fixed amount per patient, Fee-for-Service requires payment for each individual medical service or procedure rendered to a patient. By utilizing this system, healthcare providers receive payment that is directly aligned with the services they provide, which encourages comprehensive and personalized patient treatment. NHIA has been working on reassessing medication pricing due to rising medical costs in Nigeria, resulting in this latest update.
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Additionally, the main goal of the authority is to make healthcare more accessible and affordable, while also improving the quality of service and extending coverage nationwide. Dr. Ohiri emphasized the NHIA’s dedication to increasing participation in the national health insurance program and collaborating with partners to ensure that Universal Health Coverage (UHC) is accessible to every individual in Nigeria. NHIA is dedicated to assisting vulnerable groups by modifying eligibility requirements and utilizing special funds to guarantee access to essential healthcare benefits.