Lagos State Government, on Tuesday, launched the Lagos Private Health Plan (LPHP) Partnership and flagged off the enforcement of mandatory health insurance, with Governor Babajide Sanwo-Olu announcing a grace period until December 31, 2026, for employers, workers and residents to secure appropriate coverage before enforcement commences on January 1, 2027.

The launch, held at Lagos Continental Hotel, Victoria Island, also featured the unveiling of 21 participating Health Maintenance Organisations (HMOs), marking a major step in the state’s drive to expand health insurance coverage and protect residents from the financial burden of healthcare.

Sanwo-Olu said the initiative, anchored on Executive Order EO/BOS/01/2024 signed on July 16, 2024, was designed to ensure that access to healthcare would no longer depend solely on an individual’s ability to pay at the point of illness.

Reaffirming the state’s commitment to implementation of State Health Insurance Scheme, Ilera Eko, the Governor said the scheme would create a more inclusive healthcare financing system for formal-sector employees, informal-sector workers and vulnerable residents.

Explaining the rationale for the new plan, the Governor said the existing Ilera Eko scheme was designed primarily to support vulnerable populations and people working in the informal sector, necessitating a complementary arrangement for salaried workers and corporate organisations.

He disclosed that actuarial analysis of approximately two million claims and enrolment records informed the development of the LPHP, which offers structured health insurance options for the formal sector.

The Governor said the state had established implementation and enforcement mechanisms to ensure compliance, including a Lagos Private Health Plan Implementation Steering Committee and an Enforcement Task Force.

He directed the relevant authorities to provide operational guidelines and support for enrolment before the end of the grace period, stressing that the objective was compliance rather than confrontation.

“We want compliance, not unnecessary confrontation,” Sanwo-Olu said, urging employers and workers to use the transition period to select suitable plans and complete registration.

He added that the initiative would strengthen healthcare financing by making payments to participating providers more predictable, improving service delivery and reducing pressure on public hospitals.

The Governor also said part of the contributions would support the Lagos State Health Equity Fund and public healthcare infrastructure, helping extend coverage to residents unable to afford insurance. He assured stakeholders that the state would monitor HMOs’ performance, particularly prompt payment to providers, claims settlement and access to appropriate care.