Lagos State Governor Babajide Sanwo-Olu has given residents, employers and employees till December 31, 2026, to acquire medical insurance, warning that enforcement of obligatory protection will start in January 2027.
The governor introduced the deadline on Tuesday whereas launching the Lagos Private Health Plans (LPHP), an initiative designed to increase medical insurance to wage earners and company organisations, complementing the present Ilera Eko scheme for susceptible residents and employees within the casual sector.
The coverage, launched below Executive Order EO/BOS/01/2024, goals to cut back dependence on out-of-pocket funds for medical remedy and defend households from monetary hardship arising from sickness.
The launch, attended by healthcare practitioners, well being upkeep organisations (HMOs), authorities officers and different stakeholders, marks a renewed effort by the state authorities to increase insurance coverage protection and guarantee residents can entry healthcare with out bearing the complete price of remedy once they want it.
Sanwo-Olu mentioned the obligatory scheme positioned obligations on people, employers and the federal government, stressing that each resident ought to have entry to a medical insurance plan.
He lamented that many households struggled to pay hospital payments from the identical revenue wanted for lease, faculty charges and different important bills.
“When that mother walks into the hospital in Lagos State next year, she will show her card. She will receive care, and she will keep her money for her journey back home,” the governor mentioned.
He mentioned the scheme would allow mother and father to hunt medical consideration for his or her youngsters with out worrying about how one can pay hospital payments.
The governor defined that whereas Ilera Eko catered for susceptible residents and people within the casual sector, the brand new personal well being plans would cowl formal-sector employees and company organisations.
“Ilera Eko serves the informal sector and the vulnerable. The Lagos Private Health Plans will serve the formal sector. There is now a plan offered by the state for every Lagosian, be it formal, be it informal, be it vulnerable,” he mentioned.
According to Sanwo-Olu, licensed actuaries reviewed practically two million claims and enrolment information to find out the price of offering medical insurance for formal-sector employees.
He disclosed that 21 HMOs had endorsed participation within the new plans, describing the initiative as a partnership between the federal government and personal operators to increase protection and enhance healthcare supply.
The governor mentioned the federal government had granted a moratorium till December 31, 2026, to offer residents and employers ample time to enrol earlier than enforcement begins in January.
“I truly, truly want compliance. I don’t want a horse whip for anybody. I want people to go out there and let us have free compliance,” he mentioned.
To coordinate implementation, Sanwo-Olu introduced the institution of an implementation steering committee and an enforcement activity power to supervise the rollout and guarantee compliance throughout the state.
He additionally mentioned the federal government would monitor collaborating HMOs to make sure hospitals had been paid promptly, claims had been correctly settled and the medical providers lined by insurance policy had been delivered.
“At least 70 kobo of every naira of premium paid that you collect must be spent on care,” Sanwo-Olu mentioned, including that the state would publish quarterly monitoring outcomes.
The governor additional disclosed that contributions from the personal well being plans would help the Lagos State Health Equity Fund, which assists residents unable to afford insurance coverage premiums.
Other contributions would help the supply of medicine, medical gear and personnel in public well being amenities.
He pledged that the federal government would promote transparency within the administration of insurance coverage funds and guarantee healthcare suppliers acquired funds promptly.
“Every hospital should be paid on time. Every naira that enters the system should be accounted for in public,” he mentioned.
Sanwo-Olu additionally appealed to Nigerian medical doctors who had emigrated to rethink returning dwelling, arguing that improved healthcare financing might make the sector extra sustainable for medical professionals.
“We’re restoring dignity, viability, and credibility in the health sector,” he mentioned.
The Commissioner for Health, Prof. Akin Abayomi, described the initiative as a serious shift in healthcare financing in Lagos, saying the prevailing dependence on direct funds positioned extreme strain on households and healthcare amenities.
“Today, we are going to witness the most important policy shift in the health sector of Lagos State. Lagos, I believe, will never be the same again,” Abayomi mentioned.
He warned that paying for remedy solely when sickness occurred might wipe out family financial savings, power households to promote property and push them into debt.
“A single admission can deplete all our savings, and you may even have to liquidate your assets and even plunge yourself into debt,” he mentioned.
Abayomi defined that medical insurance spreads remedy prices throughout a pool of contributors, decreasing the monetary burden on people whereas offering hospitals with a extra predictable income.
“Insurance answers that. It moves the payment away from the moment of illness and spreads the cost across the community who stay well,” he mentioned.
He mentioned obligatory enrolment was essential to make sure that wholesome folks, in addition to these already requiring medical consideration, contributed to the insurance coverage pool.
According to the commissioner, Lagos at present has about two million insured residents, whereas the federal government is focusing on not less than 10 million enrollees.
“The target is at least 10 million. This is a five-fold increase in business,” he mentioned, highlighting the potential for expanded alternatives for HMOs and healthcare suppliers.
Abayomi added that predictable income from insurance coverage would allow hospitals to plan their operations, spend money on gear, enhance providers and place larger emphasis on preventive healthcare.
Earlier, the Chairman of the Board of the Lagos State Health Management Agency (LASHMA), Dr Adebayo Adedewe, mentioned the company would intensify enrolment, public consciousness and group engagement to make sure the coverage translated into accessible healthcare.
He mentioned the company had stepped up consciousness campaigns by means of radio, billboards, digital advocacy and partnerships with conventional rulers, market associations, transport unions and grassroots organisations to achieve residents throughout the state.
The marketing campaign, he added, would focus significantly on merchants, artisans, transport operators and small-business house owners who may in any other case stay exterior the insurance coverage system.
Adedewe additionally disclosed that the Lagos State Health Equity Fund had been elevated from N1 billion to N3 billion to strengthen help for susceptible residents.
“Particular attention remains on vulnerable residents among us who may not be able to afford insurance premiums,” he mentioned.
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