Health Maintenance Organisations (HMOs) under two industry associations, the Health and Managed Care Association of Nigeria (HMCAN) and the Association of Health Insurance Practitioners of Nigeria (AHIPN), have disputed the Lagos State government's claim that 21 HMOs endorsed its newly launched Lagos Private Health Plan (LPHP). The associations made their position known in a statement signed by their chairmen, Abdulkadri Osumah and Ben Okpalla, respectively. They noted that participation by individual operators in consultations or the launch does not amount to collective endorsement.
The HMOs' reaction followed the state government's launch of the LPHP partnership and announcement of a 31 December 2026 deadline for residents, employers and workers to obtain health insurance. At the launch in Lagos, Governor Babajide Sanwo-Olu said 21 HMOs were participating in the new arrangement, which the government said is designed to expand health insurance coverage, particularly among formal-sector workers and corporate organisations. The plan requires approval from the National Health Insurance Authority (NHIA) before implementation.
HMCAN and AHIPN said accrediting an HMO is different from approving a specific health plan. They noted that attendance at the launch, consultations or expressions of interest by individual HMOs do not constitute HMCAN's and AHIPN's endorsement. The associations requested corrections to reports suggesting collective industry endorsement. They support the federal government's drive towards universal health coverage and the objectives of the Lagos State Executive Order on mandatory health insurance.
However, the associations said implementation should be "lawful, affordable and properly coordinated." According to the groups, a communique issued after discussions between the NHIA and Lagos State in October 2025 recognised the NHIA as the statutory regulator, while HMO participation in the Lagos plan is voluntary. The framework also provided for employers to choose NHIA-approved plans and required health plans to obtain prior approval from the authority.
The associations therefore called for the publication of the relevant NHIA approval documents. They also raised concerns about the levy on private-sector health insurance arrangements, which they said could increase costs for employers and reduce funds available for patient care. The groups warned that if the levy is imposed alongside existing premiums and statutory obligations, it could be an unnecessary burden and a form of double taxation on employers already funding healthcare.
Lagos State has maintained that health insurance is compulsory for residents under an Executive Order signed by Mr Sanwo-Olu in July 2024. The state government said the new private health plan is intended to provide an additional route for formal-sector employees and organisations to obtain coverage, alongside the existing Ilera Eko scheme. The government has given residents, workers and employers until 31 December 2026 to obtain appropriate coverage, with enforcement scheduled to begin on 1 January 2027.
The Commissioner for Health, Akin Abayomi, said the state was targeting an increase in the number of insured residents from about two million to at least 10 million. HMCAN and AHIPN, however, want the government to review the 31 December deadline, arguing that employers need adequate notice, clear guidelines and a realistic transition period before enforcement and sanctions begin. The associations called for an urgent meeting involving the Lagos State Government, LASHMA, NHIA, employers, healthcare providers, labour and other stakeholders to resolve the outstanding issues and agree on a phased implementation.
Key points
- The Lagos State government has set a deadline of 31 December 2026 for residents, employers and workers to obtain health insurance.
- The Health Maintenance Organisations (HMOs) have disputed the Lagos State government's claim that 21 HMOs endorsed its newly launched Lagos Private Health Plan (LPHP).
- The associations have raised concerns about the levy on private-sector health insurance arrangements and called for the publication of the relevant NHIA approval documents.
