The Lagos State Government has given residents, employers and workers until December 31, 2026, to obtain health insurance, ahead of the enforcement of compulsory coverage scheduled to begin on January 1, 2027.
Governor Babajide Sanwo-Olu announced the deadline while launching the Lagos Private Health Plans (LPHP) Partnership, an initiative designed to extend health insurance coverage to salaried workers and corporate organisations.
The policy is being implemented under Executive Order EO/BOS/01/2024, which provides for compulsory subscription to a social health insurance scheme by residents and workers in Lagos State.
The order covers people working in the public and private sectors, as well as self-employed and unemployed residents. It provides for enrolment through the Lagos State Health Management Agency (LASHMA) or an accredited private health insurance provider.
At the launch in Victoria Island, Sanwo-Olu said the objective was to reduce the financial burden of medical treatment on households and ensure that access to healthcare was not determined solely by an individual’s ability to pay.
He explained that the existing Ilera Eko scheme would continue to serve vulnerable residents and people in the informal sector, while the new Lagos Private Health Plans would provide additional coverage options for salaried workers and corporate organisations.
The governor said employers should regard healthcare coverage for their workers as an essential business responsibility, similar to pension contributions and other employment obligations.
He also warned healthcare providers against refusing emergency medical attention to patients because of their inability to pay immediately or present evidence of insurance coverage.
According to him, patients requiring emergency treatment must first be stabilised before discussions about payment and insurance arrangements.
Sanwo-Olu announced that 21 health maintenance organisations (HMOs) had endorsed participation in the new private health plans, describing the initiative as a partnership between the state government and private operators to expand coverage.
However, the claim of collective industry endorsement has since been disputed by two major associations representing health maintenance organisations.
The Health and Managed Care Association of Nigeria (HMCAN) and the Association of Health Insurance Providers of Nigeria (AHIPN) said they had not endorsed the Lagos Private Health Plan Partnership as presented by the state government.
In a statement sent to The PUNCH, the associations explained that attendance at the launch, consultations and expressions of interest by individual HMOs did not amount to collective endorsement by the organisations.
They also stressed that accreditation of an HMO was different from regulatory approval of a specific health insurance plan.
The associations maintained that the proposed arrangement must obtain the necessary approval from the National Health Insurance Authority (NHIA) before implementation.
They further called for clarification on the regulatory framework, minimum benefit packages, compliance certificates and the proposed 13 per cent levy on private-sector health insurance arrangements, warning that additional charges could increase costs for employers and reduce funds available for patient care.
HMCAN and AHIPN also argued that existing NHIA-approved health insurance coverage should be recognised without requiring employers or individuals to make duplicate payments or enrolments.
They urged the Lagos State Government to engage relevant stakeholders and consider reviewing the December 31 compliance deadline to allow employers sufficient time to understand the requirements and make arrangements.
Despite the concerns raised by the industry associations, the Lagos State Government had not announced a change to the January 1, 2027 enforcement date in the reports available.
Also speaking at the launch, Lagos State Commissioner for Health, Professor Akin Abayomi, said advances in medical technology, including artificial intelligence, robotics and modern diagnostic equipment, had increased the cost of healthcare delivery.
He argued that a stronger health insurance system was necessary to protect residents from rising medical expenses and reduce the pressure created by out-of-pocket payments.
Abayomi described the initiative as a major shift in the state’s healthcare financing system, saying that broader insurance coverage would improve access to medical services and strengthen healthcare facilities.
Earlier, the Chairman of the Lagos State Health Management Agency, Dr Adebayo Adedewe, disclosed that the government had increased the state’s Health Equity Fund from ₦1bn to ₦3bn.
He said the fund was intended to support health insurance coverage for more than 500,000 vulnerable residents who could not afford the required premiums.
Adedewe added that LASHMA was expanding public awareness and enrolment through radio campaigns, billboards, digital advocacy and partnerships with traditional rulers, market associations, transport unions and other grassroots organisations.
The governor also urged medical professionals considering relocation abroad to reconsider, arguing that improved healthcare financing could make the sector more sustainable for practitioners.
With the deadline approaching, the proposed policy is expected to affect residents across different employment categories, while the disagreement between the state government and industry associations raises questions about regulatory approval, implementation requirements and the treatment of existing insurance policies.
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