The National Health Insurance Authority (NHIA) has increased the capitation payment of health care providers per enrolled patients by 93% to improve service delivery.
The director general of the NHIA, Dr. Kelechi Ohiri, announced the development during the HMO Standing Committee Meeting Tuesday in Abuja.
The DG stated that the two key payment mechanisms for healthcare providers are capitation and fee for service payments and this adjustment follows an initial increase made six months ago which was 60% increase in capitation fees and 40% increase in the fee or service payments.
Dr Ohiri noted that this was introduced as a temporary measure to stabilise the industry and manage rising costs while awaiting a full actuarial review to establish sustainable rates.
“The new rates which are approved by the Minister for Health and Social Welfare, Prof. Muhammad Ali Pate, are based on the findings of the completed actuarial review, and will be implemented from April 2025.
He further stated that the fee for service payments, which reimburse specific medical procedures and services, have risen by 378% compared to the 2023 rates.
Specifically, these adjustments not only aim to address outdated rates but also to align compensation with the reality of rising medical costs, and incentive quality care. Backed by actuarial analysis, the revised rates are designed to ensure fairness, sustainability, and improved healthcare service delivery.