The National Health Insurance Authority (NHIA) has raised capitation fees and service fees by 93 percent and 378 percent respectively.
The Director General of the NHIA, Kelechi Ohiri, said the increase of key payment mechanisms for healthcare providers, capitation and fee-for-service payments, would motivate healthcare providers and improve service delivery.
Henzodaily reports that a capitation fee is a fixed amount of money paid to a healthcare provider for each patient they treat. The amount is paid on a monthly or annual basis.
Ohiri announced the development at a stakeholders meeting with Health Maintenance Organizations (HMOs) and Healthcare Providers in Abuja, on Monday.
“This adjustment follows an initial increase made six months ago: 60% increase in capitation fees and 40% increase in the fee-for-service payments.
“This was introduced as a temporary measure to stabilize the industry and manage rising costs while awaiting a full actuarial review to establish sustainable rates,” he said.
According to him, the new rates which were approved by the Minister for Health and Social Welfare, Professor Muhammad Ali Pate, were based on the findings of the completed actuarial review, to be implemented from April 2025.
“The revised tariffs aim to guarantee fair compensation and encourage providers to deliver top-quality services, and mitigate rising medical costs.
“Overall, the adjustments are tailored to provide better financial support for healthcare providers, leading to improved patient care and industry standards,” he stated.
Stakeholders at the meeting, including heads and representatives of HMOs, Healthcare Provider Associations and Committee of Chief Medical Directors of Federal Tertiary Hospitals, commended the NHIA for the bold step to stabilize Nigeria’s effort toward universal health coverage and significant reforms being implemented.