National Health Insurance Authority (NHIA) has increased two key payment mechanisms for healthcare providers in the areas of capitation and fee-for-service payments.

The adjustment follows an initial increase made six months ago, which saw 60 per cent increase in capitation fees and 40 per cent increase in the fee-for-service payments.

Under the revised structure, capitation (fixed yearly payments to health care providers per enrolled patients) has increased by 93 per cent compared to the rate in December 2023.

Meanwhile, fee-for-service payments, which reimburse specific medical procedures and services, have risen by 378 per cent compared to the 2023 rates. The Director General of NHIA, Dr Kelechi Ohiri, announced the development at the NHIA-HMO Standing Committee Meeting, yesterday, in Abuja, explained that the new rates, which were approved by the Minister of Health and Social Welfare, Prof Muhammad Ali Pate, were based on the findings of the completed actuarial review, and will be implemented from April 2025.

Ohiri said the rates were introduced as a temporary measure to stabilise the industry and manage rising costs while awaiting a full actuarial review to establish sustainable rates, adding that the adjustments not only aimed to address outdated rates, but also to align compensation with the reality of rising medical costs.