Ogun Launches Formal Sector Health Insurance Scheme, Offers 50% Subsidy for Public Servants

The Ogun State government on Tuesday launched a health insurance scheme designed for the formal sector, comprising civil servants, public servants, and workers in the organized private sector, as part of activities lined up for the 2024 Public Service Week.

It would be recalled that the State Governor, Prince Dapo Abiodun, launched the scheme for the informal sector in February 2022, allowing artisans, market women, traders, and other residents making a living through non-organized environments to benefit.

Prince Abiodun, during the official launch of the scheme at Obas Complex, Governor’s Office, Oke-Mosan, Abeokuta, disclosed that his government would pay 50% of the premium for every worker registered in the scheme.

Abiodun, who was represented by his deputy, Engr. Noimot Salako-Oyedele said it is in the interest of the present administration to ensure the well-being and welfare of public servants who are the engine room of the government.

The governor stated that the theme of the 2024 Civil Service Week, “Building a Socially Responsive Public Service in the 21st Century: A Place of Ethics and Values,” resonates deeply with the aspirations and ideals that the present administration has for the public service.

“I hereby reassure all public servants that their well-being will remain a priority in the government’s development agenda, as demonstrated in our payment of a N100 million counterpart fund, which has granted the state access to the Federal Government’s Basic Health Care Provision Fund since February 2020; the launch of the Informal Sector of OGSHIS in 2020; and the provision of a N100 million take-off grant for the Ogun State Health Insurance Agency in November 2020.”

“Also, as part of palliative support in the health sector earlier in the year, we released N310 million as an equity fund to provide health insurance access to low-income residents of the state, part of which facilitated free surgeries for over a thousand residents. Additionally, we have released the sum of N324 million to support 3,300 pregnant women in the state for free under the scheme tagged Ibidero. This includes covering their antenatal and postnatal care, as well as providing a 5,000 naira token after delivery,” he said.

Governor Abiodun emphasized that the success of the scheme is a collective effort, requiring close collaboration with health officials and stakeholders to ensure the system is effectively implemented, well-monitored, and continuously improved.

In her remarks, Commissioner for Health, Dr. Tomi Coker noted that since close to 80% of Nigerians pay out-of-pocket for healthcare, the majority of citizens are prone to the dire consequences of catastrophic health expenditures.

She encouraged residents of the state to take advantage of both the informal and formal sector schemes, emphasizing that these programs serve as financial risk protection against undue health expenses that could plunge individuals into extreme poverty.

“I am delighted that His Excellency, Prince Dapo Abiodun, whose prioritization of health has demonstrably led to improvements in our health systems, is launching this scheme today. This is no longer just a plan. Our 5 has already initiated it. So, rest assured, this scheme is here and here to stay,” she said.

The Head of Service, Mr. Kehinde Onasanya, in his welcome address, remarked that good health is integral to the smooth and successful socio-economic endeavours of the people, underscoring the reality of the common maxim, “health is wealth.”

He added that the current administration’s understanding that healthcare is central to the improved productivity of the workforce is evidenced by the governor’s decision to launch the formal sector health insurance scheme. He further noted that the scheme would directly impact the well-being of not just workers but also their relatives.

The Chairman of the Nigeria Labour Congress (NLC), Ogun State chapter, Comrade Ademola Benco, while delivering his goodwill message, described Governor Abiodun as worker-friendly and conscientious of the welfare of workers, commending him for paying 50% of the premium for every worker registered in the scheme.

He, however, pleaded with the government to ensure that the program is consistent and sustainable, promising the union’s support toward the success of the scheme.