How to Start Healthcare Insurance Business

Healthcare Insurance Business is a useful form of insurance to control unforeseen medical expenses.

It is a great incentive to attract and keep employees.

Recently, some people believe that the insurance companies do not cover the most essential forms of medical expenses.

Therefore, we will discuss some of the Health Insurance plans available for Nigerian businesses, as well as general information that you need to know.

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Healthcare Insurance Business

Procedures for most of the healthcare  management organizations (HMOs)

Most HMOs will allow individuals and their families to purchase insurance directly.

But others will only sell to a business.

So, the business owner or HR department would work directly with the HMO.

The buyer (either the business or the individual) has to select a health plan based on the premium (fee) that he/she has to pay.

However, you get more coverage if you are willing to pay more.

Ensure that you get a list of hospitals in their network after filing out all the forms and making a payment.

Each worker could add a spouse and four children, if applicable.

In case an employee falls sick, they can visit the hospitals in the insurer’s network and receive treatment, up to the limits of their plan.

Below are lists of four of the largest Healthcare Insurance Business companies in Nigeria.

Note: Prices are generally not available on their websites anymore.

1. Hygeia HMO:

They offer health insurance for individuals and small businesses with at least ten employees.

They have four plans with different levels of coverage: HyPriority, HyClassic, HyAdvantage and HyPrestige.

They have listed prices, and all the hospitals in their nationwide network.

Regrettably, those bits of information went away with the website redesign.

2. Total Health Trust:

This Company offers health insurance to both individuals and corporations.

They have five plans with varying levels of coverage: Standard, Silver, Gold, Diamond and Platinum.

They also have listed prices and all the hospitals in their nationwide network.

Regrettably, that information also went away with a website redesign.

3. Clearline limited:

They also offer health insurance to both individuals and corporations.

They have four plans with different levels of coverage.

The prices and list of hospitals in their network are available on the website.

So that is an advantage.

4. Mediplan Healthcare:

They offer health insurance to both individuals and corporations.

They have four plans with varying levels of coverage.

The prices and list of hospitals in their network are also available on the website.

The historical development of Health Insurance in Nigeria has been a snaky from the first attempt in 1962 to the enactment of the National Health Insurance Scheme (NHIS) act 35 of 1999.

Although, there was a gradual increase in coverage from less than 150,000 lives in 2004 to about 5 million (3% of the population) in 2014.

The National Health Insurance Scheme (NHIS).

Which covers mainly federal public sector worker and their families is a social security plan with a comprehensive benefit package.

Setbacks to the scheme can be tackled by making the scheme compulsory, improving regulation and exploring alternative funding.

See also:14 Steps to start Medical Equipment Sales Business in Nigeria

Health Insurance scheme in Nigeria: An Overview

This scheme can be said to have undergone a long development over the past five decades.

In the last few years, there has been a steady development.

The Social Health Insurance in Nigeria have undergone a snaky planning process from 1962 until the National Health Insurance Scheme (NHIS) was created by the NHIS act 35 of 1999.

The initial attempt to establish a health insurance scheme in Nigeria was made in 1962.

During this period the federal minister of health, Dr. M. A. Majekodunmi presented a bill at parliament for its establishment in the Lagos area.

Regrettably, the idea was abandoned by the Nigerian Medical Association.

After a couple of years, the plan was abandoned during the civil war years and later revisited.

In 1984, the Minister of health, Admiral Patrick Koshoni commissioned a study led by Prof. Diejomaoh.

Which found the scheme necessary and feasible in Nigeria.

In 1988, another Health’s Minister, Prof. Olikoye Ransome -Kuti, commissioned the Dr. Emma Umez-Eronini committee.

Which recommended the template for the present day National health insurance scheme (NHIS).

Read also:Top 61 Medical Practitioners Business Ideas in Nigeria

Follow Nigerian Health Insurance Law

The law to establish the scheme was signed in May of 1999.

Although, operations did commence until 2005 due to administrative problems.

Within the time of signing into law and takeoff of the scheme gave chance to private sector to grow private health insurance.

With enough Pressure from the private sector coupled with the enthusiasm of another Minister of Health, Prof. Eyitayo Lambo led to the official flag off of the formal sector programme in June 2005 and commenced services in September 2005.

Just after the scheme was commenced.

It was given a presidential mandate to ensure universal coverage of Nigerians by 2015 through Social Health Insurance.

However, health insurance cover in Nigeria has been on the rise over the last decade.

Less than 150,000 lives in 2004 to about 5 million in 2014 can be seen as a modest achievement, considering the fact that only about 3% of the country’s population have access to health insurance in spite of the big dream of achieving universal coverage by 2015.

Read also: Top 25 Nursing Business Ideas & Opportunities in Nigeria

If you need a complete business plan, please let us know. Or, you want us to help you set up this business, kindly contact us. Otherwise, Please check out these other business ideas you can do.

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