In a historic move reflecting its commitment to providing quality, affordable, and accessible healthcare, the Lagos State Government has announced the signing of a comprehensive Health Insurance Executive Order by the Governor, Mr. Babajide Sanwo-Olu.
The groundbreaking directive, issued on July 16, 2024, aims to transform the healthcare system through an innovative partnership between the Ministry of Health, Lagos State Health Management Agency and the private sector. It is mainly about health insurance for social protection.
Speaking at a press briefing, Commissioner for Health Prof. Akin Abayomi detailed the key provisions and goals of the transformative policy, emphasising that the initiative is set to significantly improve the health outcomes for Lagos State residents by establishing a structured, regulated, equitable, and sustainable health insurance scheme that is inclusive of all Lagosians.
He said the initiative aligns with the objective of the National Health Insurance Authority Act 2022 – making State leverage social health insurance mandatory to achieve Universal Health Coverage (UHC).
According to him, “Social health insurance, universally practised in various forms, has numerous socioeconomic benefits. It pools contributory funds and spreads risk across a large group, minimising individual financial exposure and enhancing protection. Such schemes provide social safety nets with equitable components aimed at achieving Universal Health Coverage (UHC). Social Health Insurance schemes are typically mandatory to ensure wide coverage, maximising collective benefits to society. Contributory premiums are modest, supporting the government in providing a standard level of care to all citizens regardless of socioeconomic status.
“The Lagos State Social Health Insurance Scheme is called Ilera Eko, which is managed by the Lagos State Health Management Agency (LASHMA). Conversely, private health insurance is typically voluntary, private sector driven, competitive, and profit-driven, offering a wide range of services-based on affordability. By creating synergies between social and private health insurance pathways, Lagos is promoting a platform for widespread uptake and sustainable healthcare coverage.
“Universal Health Coverage (UHC) ensures that everyone in a region has equitable access to essential healthcare services without financial hardship. Key characteristics of UHC include a comprehensive range of services covering the common needs of the community, such as preventive care, diagnostics, treatments, and medications. Services not covered by the basic health package of Social Health Insurance (Ilera Eko) can be supplemented by approved private health insurance packages or state-supported medical assistance programmes”, he stated.
The Commissioner explained that the Executive Order signed by Mr. Governor outlines several critical components aimed at revolutionising healthcare delivery in Lagos State. These components are designed to ensure comprehensive, equitable, and sustainable health coverage for all residents. The Order included Promotion of Health Insurance; Enforcement of Grace Period; Public-Private Synergy; Technical Working Group; Funding for the Vulnerable; Regulation and Oversight, as well as Quality Assurance and Monitoring.
Abayomi said, “No Lagosian should have to choose between healthcare and other basic needs. This scheme is designed to eliminate those barriers and ensure everyone can receive the care they require, when they require it”.
He called on healthcare providers, civil society organisations, the private sector, and the public to join in this transformative journey. “We are building a healthcare system that serves everyone, and we need the support of all stakeholders to make it a reality”, Abayomi said.
Thanking Mr. Governor for his visionary leadership and unwavering commitment to the health and well-being of Lagos State residents, He said, “We are profoundly grateful for Governor Sanwo-Olu’s bold vision and steadfast support for healthcare reform in Lagos State. His leadership in issuing this Executive Order exemplifies his dedication to ensuring every resident has access to quality healthcare. This visionary step will undoubtedly transform healthcare delivery in Lagos State and set a benchmark for others to follow”.
