NHIS to cover every Nigerian worker

By EMEKA EJERE

There are strong indications that the Federal Government may soon make health insurance compulsory for all employers of labour across the country. The National Assembly is working on reforming the National Health Insurance Scheme Act, 2004, with many new provisions as contained in the National Health Insurance Commission Bill 2017.

The target of the legislators is to repeal the existing National Health Insurance Scheme Act, Cap. N42, LFN 2004, and replace it with the National Health Insurance Commission Act. A National Assembly source revealed that the bill, which was sponsored by the Chairman, Senate Committee on Health, Senator Olarewaju Tejuoso, passed second reading penultimate week.

One of the reforms being planned is to make it compulsory for employers of labour with at least five workers to subscribe to the scheme. Under the NHIS Act, employers with 10 workers can join the scheme, but the law does not make their participation mandatory.

The NHIS Act, which was introduced more than a decade ago, had sought to alleviate poverty in the country by reducing avoidable deaths, ensuring quality health services, preventing capital flight by those patronising foreign hospitals, while also contributing to the economic development of the country.

But the scheme has continued to grow at a snail pace, leaving more than 93 per cent of Nigerians without access to health insurance.

The NHIS ensures the pooling of funds from different sectors of the economy, with many people contributing money but only a few of them actually falling ill. The essence is to guarantee free health care for the contributors whenever the need arises.

While the importance of a virile health insurance scheme cannot be overemphasized, experts have faulted the fact that majority of those on the NHIS enjoy cover only for minor ailments.

Last week the Director General of the National Agency for the Control of AIDS, NACA, Sani Aliyu, called for the integration of HIV treatment into the nation’s Health Insurance Scheme, saying it would help increase the number of people that will be placed on treatment.

Aliyu who spoke at the stakeholders meeting on integrating comprehensive HIV/AIDs services into health insurance in Abuja, said the agency has realized that health insurance, especially community health insurance could be a mechanism that would allow more people to be placed on treatment.

“This would also allow the state governments to contribute as well because we know the budgets are limited, the priorities are great, the needs of our people are great and HIV is only one component of the health sector”, he said

The NACA boss, who stated that the cost of treating HIV has restricted so many people from receiving treatment, said including HIV treatment in the scheme would protect patients from hardship.

He said, “There is need for a scheme that allows you to fund the supply of drugs for People Living With HIV/AIDS.

“For now, it costs about 50,000 to put one HIV patient on treatment. If HIV treatment can be integrated into the health insurance scheme, all an individual will need for treatment of HIV/Aids +TB care is N1700.

Most of the enrollees on the NHIS are public servants, because many workers in the private sector have snubbed the scheme and prefer to patronise their personal doctors for better treatment, due to complaints that the services being offered under the scheme hardly meet their health needs.

However, Senator Tejuoso reportedly said, “We are inviting people to bring their proposals on May 17 during the public hearing that will take place in Abuja; we have not yet amended the Act.

“That is why we are holding the public hearing so that everyone can come and contribute. Majority of people want it (participation by private employers) to be mandatory; some don’t want it to be; but after the public hearing, we will come to a conclusion.”

The new bill is entitled: ‘A bill for an Act to repeal the National Health Insurance Scheme Act, Cap N42 LFN 2004 and to enact the National Health Insurance Commission Bill, 2017, enacted by the National Assembly of Nigeria’.

The aims are to ensure a more effective implementation of a national health insurance policy that will enhance access to health care services to all Nigerians, as well as promote and effectively regulate health insurance schemes in the country.

Section 1 of the bill states that a body to be known as the National Health Insurance Commission will be established to oversee the implementation of the Act.

It explains that the principal objective of the commission will be to ensure the effective implementation of a national health insurance policy that enhances access to health care services to all Nigerians; promote and regulate health commencement; and establishes the National Health Insurance Commission health insurance schemes in Nigeria.

According to the bill, these types of health insurance schemes will be established and operated in the country: public sector social health insurance scheme to cover public sector employees and their dependants; organised private sector social health insurance scheme; mutual health insurance schemes; vulnerable group funds; and any other health insurance scheme as may be approved under the provisions of the bill.

The provisions of the bill include the establishment of schemes to be known as the public sector social health insurance schemes (referred to as the public sector schemes) for the purpose of providing health insurance coverage, which will entitle persons working in the public sector and their dependants the benefits of prescribed good quality and cost-effective health services.

The bill explains that a public sector scheme may be established by the Federal Government; a state government, including the Federal Capital Development Authority; or a local government to cover all its employees and their dependants.

It also states that a scheme to be known as the organised private sector social health insurance scheme (referred to as organised private sector scheme) will be established for the purpose of providing health insurance, which will entitle insured persons and their dependants to the benefit of prescribed good quality and cost-effective health services as set out in the bill.

“The organised private sector scheme shall cover all employees of organisations in the private sector that employ at least five workers as well as to those individuals who may want to voluntarily join the scheme,” it notes.

The bill further explains that an employer who has a minimum of five employees will together with the persons in his employment pay contributions of such rates and in such a manner as may be determined from time to time.

According to the bill, a registered employer under the organised private sector scheme will deduct from his employees’ wages the approved amount of contribution payable by the employee.

This contribution, along with that of the employer, it adds, will be collected by or remitted to the organised private sector fund insurer for the purchase of a defined package of health care benefits for the enrollees.

Changing perception of insurance in Nigeria

Stanbic IBTC Insurance Brokers Limited, a member of Stanbic IBTC Holdings Plc, has announced its plans to deploy trust-building measures that would block major gaps in the insurance value chain in Nigeria.

With the ultimate aim of enhancing insurance penetration in the country, the company said that given the low level of trust in the industry, strategic steps are required to restore public confidence and put the sector on a stronger footing.

Despite a huge population of over 170 million, insurance penetration in Nigeria has remained very poor. In July 2015, insurance penetration in Nigeria stood at 0.6% compared to neighbouring African countries like South Africa, Namibia, and Kenya which have 15.4%, 7.7%, and 3.4% respectively.

The major challenges facing the industry include product distribution and its channels, inadequate policies and poor implementation, poverty, lack of trust among other factors.

Speaking during a media interactive forum in Lagos recently, Chief Executive of Stanbic IBTC Insurance Brokers Ltd, Mr. Anselm Igbo, identified some of the perceived gaps in the industry to include inadequate support to clients to help them effectively manage their risks and the claims management process.

Through effective risk transfer mechanisms, seamless insurance cover payment and impeccable quality of service, the customer will have peace of mind, and subsequently provide the testament required to convince the insuring public to embrace insurance and deepen participation.

This will in turn empower the industry to play its catalytic role in economic development by mobilizing savings for investment, mitigating loss, ensuring financial stability and promoting trade and commerce.

“Public trust and integrity are the bedrock of the insurance business. By applying global best practice and corporate governance, what will result is transparency and openness, which are instrumental in building trust,” Igbo stated.

According to Igbo, global best practice, including facilitating prompt payment of claims, will underline the operations of Stanbic IBTC Insurance Brokers Ltd as it aims to become one of the top five insurance brokerage firms in Nigeria in the next 10 years.

The company commenced full operations in February 2016 following the granting of a licence by the National Insurance Commission (NAICOM), paving the way for the firm to offer the full spectrum of insurance brokerage services in Nigeria.

Part of the company’s goal, Igbo said, is to introduce micro-insurance products targeted at the informal sector in order to expand coverage of more Nigerians. In addition, rather than focus exclusively on corporates, as  currently obtains, the company will extend its services to all strata of society as practically everyone is subject to loss and uncertainty.

“We believe that the test of any insurance arrangement is in prosecuting claims to a satisfactory conclusion for our clients. Our role as brokers also ensures that insurers, as a matter of obligation, pay claims equitably and promptly.

“Prompt payment of claims is a key factor in any insurance contract. We continuously develop key relationships and requisite logistical processes to ensure that claims are promptly settled.”

Whilst benefiting from a strong, dynamic and vast group structure, Igbo said the company will be differentiated from the competition as it will be driven by a team of reputable and financially strong underwriters; fully customized solutions, and innovative insurance products at no additional cost to the client.

“Stanbic IBTC Insurance Brokers’ professional services are at no additional cost. We will negotiate your insurance premiums and get the best quotes available. We will not be content to rest on our oars but will consistently seek ways of making incremental improvements to our operations and the industry,” Igbo said.

He added that in an industry inundated by a persistent lack of trust and confidence from customers, the reputation of an insurer in Nigeria is critical to its success.

“We are proud that the brand strength of the Standard Bank Group, to which Stanbic IBTC Holdings belongs, echoes stability, financial strength, expertise and reliability. Consequently, we believe customers who truly want to protect the people they love will put their trust in the reliability we offer.

“We will work tirelessly to provide the best solutions and service to our clients. We are motivated and determined to continue to deliver innovative and optimal insurance and risk management solutions to our clients.”

Stanbic IBTC Insurance Brokers Limited is a subsidiary of Stanbic IBTC Holdings Plc, a member of Standard Bank Group, a full-service financial services group with a clear focus on three main business pillars – Corporate and Investment Banking, Personal and Business Banking and Wealth Management.

Standard Bank Group, to which Stanbic IBTC Holdings belongs, is the largest African bank by assets and market capitalization. It is rooted in Africa with strategic representation in 20 countries on the African continent.

Standard Bank has been in operation for 154 years and is focused on building first-class, on-the-ground financial services institutions in chosen countries in Africa and connecting other selected emerging markets to Africa and to each other, applying sector expertise, particularly in natural resources, power and infrastructure.