Lagos Rolls Out New Reforms to Strengthen Health Financing and Expand Insurance Coverage.

To accelerate progress toward Universal Health Coverage, the Lagos State Government on Tuesday launched the Lagos Private Health Partnership (LPHP), a new framework designed to strengthen health financing and significantly increase health insurance enrolment across the state.

The LPHP aims to eliminate distrust, price manipulation, and opaque practices within the health insurance space by creating a unified, transparent public–private collaboration model that guarantees fair access to quality healthcare for all residents.

Representing Governor Babajide Sanwo-Olu at the launch, the Secretary to the State Government, Barrister Abimbola Salu-Hundeyin, described the initiative as a major milestone toward building a resilient, future-ready health financing system capable of protecting families from overwhelming medical costs.

Held at the Civic Centre in Victoria Island, the event brought together senior government officials, regulatory bodies, private insurers, development partners, and financial institutions, all reiterating their support for sustainable health financing and universal access.

Sanwo-Olu explained that the LPHP was developed after Lagos domesticated the National Health Insurance Authority Act 2022 through an Executive Order issued in July 2024, which made health insurance mandatory for all residents and established enforcement structures.

He added that a dedicated Technical Working Group produced guidelines and the LPHP framework to ensure private-sector participation aligns with state policy, risk-pooling objectives, and digital accountability standards.

According to him, the reform will strengthen the private health sector—which currently delivers over 70 percent of health services in Lagos—by providing a clear model that balances service quality, equity, and financial viability.

The governor also announced that Lagos has adopted a population-based insurance enrolment model for private-sector employees to broaden risk distribution and improve access to affordable plans.

In his remarks, Commissioner for Health, Prof. Akin Abayomi, said the LPHP marks a decisive shift away from years of fragmented and inefficient private health insurance operations marked by unhealthy price wars, access restrictions, and declining public confidence.

He stated that the new system was deliberately created to restore fairness, transparency, quality, and long-term sustainability through a cooperative purchasing platform.

Abayomi noted that despite Lagos’ population of more than 25 million and its economic strength, the state still suffers from inadequate health financing, low insurance penetration, and rising medical tourism. He described the LPHP as the state’s strongest tool to reverse these trends and improve overall health outcomes.

He explained that the LPHP will operate through a robust digital marketplace that manages enrolment, provider selection, fund flow, claims, reporting, and monitoring with strict compliance mechanisms. He said the model will shift competition from price-cutting to value-based service delivery, with quality assurance overseen by HEFAMAA.

The commissioner emphasised that full enforcement of mandatory health insurance will begin after a six-month awareness campaign, in line with the governor’s directive to expand risk-pooling, cross-subsidisation, and financial protection for households.

He announced that the LPHP will also introduce a state-managed risk equalisation and solidarity fund, mandating private insurers to contribute 13 percent of premiums to support vulnerable groups, emergency care, and universal health coverage goals. Abayomi projected that Lagos could inject over ₦400 billion annually into the health system if 20 million residents enrol at an average premium of ₦20,000 per year.

Chairman of the Lagos State Health Management Agency, Dr. Adebayo Adedewe, commended the initiative, calling it a credible solution to the longstanding challenges in the state’s health insurance landscape. He described the launch as a defining moment for health financing reforms in Lagos.

The National Adviser on Health Insurance for the Healthcare Providers Association of Nigeria, Dr. Jimi Arigbabuwo, said the LPHP marks a major shift in recognising and integrating private-sector providers, who deliver most healthcare services in the country. He urged the government to ensure fair provider compensation to maintain sustainability and reduce outbound medical tourism.

Managing Director/CEO of Sterling Bank Plc, Mr. Abubakar Suleiman, highlighted that the bank’s interest aligns with its HEART agenda, noting that meaningful healthcare financing is impossible without structural reform. He pledged continued financial and digital infrastructure support for LPHP and commended Lagos for creating a unified model driven by transparency, technology, and value-based healthcare.

Other stakeholders described the LPHP as one of Nigeria’s most comprehensive health financing reforms, emphasising its potential to serve as a national model. They noted that its success will rely on sustained collaboration, consistent public education, and strong policy enforcement.

The event concluded with a call for residents, private employers, civil society groups, insurers, and healthcare providers to support the state’s mission of delivering affordable, technology-driven, and dignified healthcare to all Lagos residents.