What is this new Act about, and how does it affect you as an employer of labour?

Health insurance watchers, advocates, and the entire nation had a big reprieve in 2022 when the Federal Government signed into law the National Health Insurance Authority (NHIA) bill. This was announced by President Muhammadu Buhari on the 19th of May, 2022.

Among other things, the new law repeals the National Health Insurance Scheme (NHIS) Act of 1991 and establishes the National Health Insurance Authority as the governing agency overseeing all health insurance matters in the country. 

In this blog post, we will break down the NHIA Act and its implications for employers & HR professionals in Nigeria.

What is the NHIA Act?

The National Health Insurance Authority Act (2021) establishes and empowers the NHIA to ensure the provision of health insurance for all Nigerians through a mandatory mechanism in collaboration with state health insurance agencies.

Prior to this Act, matters of health insurance were domiciled with the National Health Insurance Scheme (NHIS). While the scheme tried to make health insurance affordable and accessible to all Nigerians, reports show that over 70% of Nigerians still had to pay out-of-pocket for health insurance.  

With the establishment of the NHIA, the country moves closer to achieving Universal Health Coverage, one of the Sustainable Development Goals, by 2030.

Among other things, the NHIA Act:

• Establishes the National Health Insurance Authority as the regulatory agency for all health insurance schemes in Nigeria (either public or private owned), HMOs and Third-Party Administrators (TPAs).
• Saddles the NHIA with the duty to improve and harness private sector participation in the provision of health care services.
• Makes health insurance mandatory for all Nigerians.
• Makes the provision of health insurance mandatory for all employers and employees in the public, private, and informal sectors.

What does the NHIA Act mean for you as a business owner or HR Professional?

Simply speaking, this new Act means that if you are an employer of at least five staff, you are now required by law to provide health insurance to your employees. It doesn’t matter whether you operate in the formal or informal sector. All employers of labour are now mandated to offer health insurance to their employees.

We know this can sound a bit daunting, especially to small businesses and organisations that have not previously offered health insurance to their employees before.

One solution for you is to use flexible employee benefit providers like Motherboard. Motherboard aggregates affordable health benefits from 15+ HMOs and allows your employees select health plans within your budget.

Motherboard can be your partner in navigating the “new landscape” of health insurance in Nigeria.

Signup for free.

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Related: What Does Lagos State’s Ilera Eko Mean For Employers In Lagos State?

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