Ultimate HMO raises capital base to N1bn

The Ultimate Health Management Services has recapitalised its capital base from N400m to N1bn in keeping with the provisions of the National Health Insurance Act 2022.

The Chairman of the Board of Directors, Angela Ajala, disclosed this on Friday in Abuja at the HMO’s 13th Annual General Meeting.

Ajala noted that the organisation went beyond the N750m minimum requirement stipulated by the regulatory body – the National Health Insurance Authority.

“We believe that if they say N750m, we can do a billion because we are not restricting ourselves to just Nigeria, we’re going beyond. So we need to expand our base and make sure that we can take on the expansion we’re doing.

“We are dealing with human lives and so the wellbeing of every Nigerian irrespective of where they are very critical to what we do.”

She also said that the HMO was not only particular about the well-being of Nigerians living in Nigeria but also expanding its horizons to cater to the well-being of its members in the diaspora who have family in Nigeria.

On his part, the Managing Director of the HMO, Lekan Ewenla said there was a need for inflationary trends to be put into consideration for upward review of premiums so that services could continue to be provided by hospitals.

Ewenla stated that health insurance is volume driven with provision for basic healthcare services to be covered, and with an amount attached to the services to be rendered.

He added that all of these parameters were put into consideration in developing the health insurance programme for Nigerians.

“As we speak, there are two risk managers for Nigerians. The first risk manager is the primary provider at the primary level. Services that are primary services are meant to be managed at the primary level by the risk managers.

“At commencement, it was determined to be N550 per person per month in 2005 and the actuarial reports that were submitted to the regulator indicated that a recommended percentage should upwardly review the N550 or whatever 65 per cent within 24 months.

“This was to take care of the inflationary trend which was responsible for the upward review of N550 to N750 in 2014.”

He highlighted that the review was not carried out in the stipulated two years which would have been 2007 but was carried out in 2014 instead, which saw the rise of premium from N550 to N750.

“Now the last review that was done was in 2014, we all know the exchange rate today and we all know that the bulk of the medications that we use in this country to provide services are imported.

“So facilities, hospitals, that’s our primary risk bearer no longer enjoy the scheme”, he said.

Speaking on getting all Nigerians on board the health insurance scheme, he said that the HMO was working with the regulatory agency to define the clusters available both in the formal and informal sectors of the nation to bring them in.

“For example, we are looking at the youths of this country that are over 40 million that in tertiary institutions across the nation, they will be mandatorily mandated through the regulatory institutions to comply.

“We are looking at the organised private sector, they’ve already complied but not totally. So we are going to see those that are still on the fringes, to bring them on board.”

He said that with time all the clusters will be brought on board as they all have associations and bodies that regulate them which would make it easier once they are all sensitised about the benefits.