Kwara Governor, Abdulrahman Abdulrazaq, has approved an upward revision of the health insurance premiums among the enrollees in the state, effective from December 1, 2024.
Speaking with journalists in Ilorin on Friday, the executive secretary, Kwara State Health Insurance Agency, Dr Olubunmi Jetawo-Winter, said that number of enrollees has increased to 70,000 in the last two months due to inflation among the people.
The new rates are as follows: Informal sector premium: N15,500 per person per year (up from N6,000); Formal sector premium: N18,000 per person per year (up from N9,000); Family package (for a total of 6 members) for the informal sector: N75,000; Family package (for a total of 6 members) for the formal sector: N87,000.
The executive secretary of the health insurance agency described the increment as a difficult decision for the governor and the agency, “given the continuing economic hardships that many families face, and despite the result of the actuarial reviews done”.
She, however, said that the scheme needed to adjust the old premiums to accommodate the rising costs of drugs, consumables, and provider payouts to continue providing high-quality healthcare services.
Dr. Jetawo-Winter, who said that reviews are suggested to be done every three years, added that Kwara had not reviewed in the last seven years since the initial analysis was done to commence implementation of the Kwara State Health Insurance scheme.
She also said that the adjustments had been considered and implemented in most states in Nigeria long before now, especially after the COVID pandemic.
“Citing already existing premiums in neighboring states, 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 is the last state to adjust tariffs nationwide, while other states still continue to review even after their already increased premiums.
“Why This Adjustment Matters? Despite the premium increase, Kwara State Health Insurance remains one of the most affordable and reliable ways to access healthcare. By paying a flat premium, residents can avoid the financial stress of sourcing funds for unexpected medical expenses for a full year, and renewable afterwards. Even purchase of drugs and consumables without accessing your doctor’s office is just as unbearable.
“The scheme ensures access to healthcare services for 365 days a year, covering registration, consultations, investigations, admissions, treatments, surgeries, drugs and consumables, etc. as outlined in the benefits package.
“Even with these new premiums, the scheme continues to be heavily subsidized, meaning Kwara residents still enjoy significantly reduced healthcare costs, compared to paying out-of-pocket expenditures for medical services.
“The new rates will not affect existing policies, but renewals on and after the commencement date will attract the updated premiums,” she said.
The agency also said that it understands challenges that the change may bring, adding that it is confident that it is necessary to guarantee sustainable, 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.”
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