Health Tax: Workers to pay 15% of salaries

The Federal Government has said all employers and employees will be mandated to make contributions of 15 per of basic salary to the new National Health Insurance Authority (NHIA) scheme. The Health and Managed Care Association of (HMCAN) in a statement said it has over the years clamoured for the implementation of a holistic law that seeks to make health insurance mandatory and has worked with the now-defunct NHIS, state schemes and the private sector in driving awareness for health insurance in the past 30 years.

It said: “HMCAN acknowledges the clarity provided by the NHIA Act 2022 which now provides mandatory health insurance across the country and the clearly defined roles of HMOs in the provision of health insurance in addition to supporting the social schemes for federal MDAs and state social schemes.

“HMCAN supports the NHIA Act’s focus to promote, regulate and integrate health insurance schemes across the country and to harness private sector participation. “Without prejudice to the anticipated Operational Guidelines to be issued by the NHIA, HMCAN wishes to provide the following clarifications for the general public and all stakeholders in respect of the provisions of the NHIA Act. “The NHIA as an Authority is vested with the regulatory responsibility for all participants under the health insurance arrangement including state health insurance agencies, healthcare providers, HMOs, TPAs and even banks and insurance companies that wish to participate in the health insurance sector “The NHIA is responsible for managing the Federal Public Service Scheme which had always been managed by the erstwhile NHIS.

The NHIA may choose to appoint HMOs (as TPAs) or TPAs to administer the scheme for them or may choose to create an in-house team to do so. “Only the State Health Insurance Agencies are authorized to establish Basic Health Care packages in the states. “The BHCP is to be defined by each state and they may appoint HMOs/ TPAs to assist them with the administration of their schemes. Participation is mandatory for residents of the relevant states and payments for subscription are expected to be paid directly to the State HIA by the individual or employer.”




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