Medical Insurance in Nigeria: How it Works (2024)
One crucial yet ambiguous aspect of the insurance market is medical insurance, particularly in a nation like Nigeria. In essence, the average person is more concerned about valued properties than with getting the various types of insurance for themselves. But life itself continues to be our most valuable resource, and thus the medical aspect of insurance.
The federal government’s recent decision to make health insurance mandatory has greatly expanded its influence across the country. It is crucial that you understand how Nigerian medical insurance operates as a citizen.
Let’s face it, navigating the Nigerian healthcare landscape can feel confusing and tough. The good news? You don’t have to go it alone. Medical insurance, like a trusty machete, can help you navigate the hassles of medical bills and unexpected emergencies.
I’ve spent years deciphering the intricacies of Nigerian medical insurance. Whether you’re a seasoned veteran or a curious newcomer, I’m here to equip you with the knowledge and tools to make informed decisions about your health coverage.
In this blog, we’ll delve into the world of how medical insurance works in Nigeria, explore the benefits, what it covers and the difference it has with health insurance. We’ll clear away the undergrowth of confusion, debunk common myths, and empower you to choose the right insurance plan for your unique needs.
So, are you ready to embark on this journey towards healthcare security? Buckle up, and let’s begin!
WHAT IS MEDICAL INSURANCE?
To put it simply, medical insurance provides protection against certain medical costs. Additionally, the coverage is frequently restricted based on the specifics of the plan. The average one, however, mostly covers specialised medical care, though some also cover medical procedures. Health maintenance organisations (HMOs) handle medical insurance claims primarily. They pay the hospital directly or compensate the insured if they pay out of pocket.
HOW DO MEDICAL INSURANCE POLICIES FUNCTION?
It operates according to a simple process; for example, the requirements to obtain health insurance are the same. It entails a person acquiring an insurance plan, which, depending on the policy, provides either more or fewer specific medical coverage. Typically, it covers certain ailments, hospital stays, accident injuries, and other medical costs. On the other hand, this might vary somewhat based on the policy’s coverage. comes with an assured payment that is predetermined as well.
Based on the insured’s age, gender, sum insured, location, and anticipated length of coverage, they create a plan or policy. Additionally, HMO primarily handles two types of medical insurance processing: cashless treatment and reimbursement. Additionally, a family edition or an individual plan are available for purchase.
WHAT ADVANTAGES DOÂ MEDICAL INSURANCE IN NIGERIAÂ OFFER?
It has several benefits, some of which are as follows:
- It offers protection against predetermined medical cost.
- Protection against serious illnesses.
- Benefit of cashless claims that reduces your out-of-pocket expenses.
- It provides more protection than the standard group plan that most employers acquire.
WHAT DOES IT COVER?
Medical insurance often provides coverage for the following:
- Additional exclusions and unusual handling as specified by the policy
- Cosmetic procedures
- Treatment for Fertility
- Certain pricey medical procedures
Generally speaking, it doesn’t cover the following, however it might based on your policy:
- Frequent trips to the hospital
- Prescription medication
- Wellness and care
WHAT DISTINGUISHES HEALTH INSURANCE FROM MEDICAL INSURANCE?
The primary distinction between the two is that, for a limited period of time, medical insurance covers you against specific illnesses and accidents. Health insurance, on the other hand, provides more thorough coverage against hospital costs. Furthermore, there is no flexibility in terms of coverage and urgent illnesses are not covered by medical insurance. Moreover, health insurance offers these and gives you the freedom to eventually shorten the term of your policy and lower your price.
CONCLUSION
The less well-known aspect of Nigeria’s insurance market is medical insurance. It is more focused than a generic health insurance and offers coverage for specific pre-defined treatments. Getting medical insurance is also your best defence against having to deal with unexpected medical expenditures for specialised emergency care.
