By Gabriel Olawale

As Lagos State officially joins the league of oil producing states, health insurance experts have tasked the State government,  to earmark 10 per cent out of its 13 percent oil derivation to fund health insurance coverage in the state.

The experts said such decision would not only provide access to quality essential healthcare services, but also guarantee financial risk protection, and access to safe, effective, quality and affordable essential medicines and vaccines for all.

Making the recommendation at the annual general meeting of Healthcare Providers’ Association of Nigeria, HCPAN, Lagos Chapter, the Managing Director of Institute for Healthcare Finance and Management Limited, Dr. Richard Kalada, said  10 per cent allocation would go a long way in actualisation of Universal Healthcare Coverage, UHC,  for the poor and vulnerable groups as well close the subsidy gaps for those with partial ability to pay.

Kalada said that the Community-based Health Insurance Scheme in the raw form has limited impact towards achieving UHC except they are coalesced into big pools, and participation made mandatory.

“The LASG should provide safety net for the poor and vulnerable groups in making premium payments for them. To achieve UHC predictable and sustainable flow of funds into the health system is very important. In Lagos state there is need to have good pools that are large, diverse and require mandatory participation.”

Kalada called for expansion of fiscal space for health and earmarking taxes for funding health, “For instance the Philippines in 2012 increased taxes on tobacco and alcohol, earmarked 85 percent for the health sector specifically 80 percent was used to enrol poor households into the NHIS.”

On his part, the Chairman Lagos State Chapter of HCPAN, Dr. Ademola Aina urged the Federal Government to fulfill its pledge of allotting 15 per cent of its annual budget to health.

“Lagos State in collaboration with other states can engage the federal government to give 25 to 50 percent of vat to states, 50 percent of which can be ring fenced to fund state health insurance schemes.”