Background to the Study
Health system are designed to improve the standard of health care of the population. Improved funding and management of health systems lead to social stability. Population’s coverage is a clear indicator of the performance of the health system. The policy of National Health Insurance Scheme (NHIS) aims at increasing coverage of the Nigerian population. Health insurance as a health care financing mechanism has become a sought-after approach to the problem of financing healthcare all over the. world. The current concern with financing, and the specific interest in health insurance is often the result of parallel trend; the recognition of basic healthcare for all citizens as a fundamental human right on the one hand, and the difficulties faced by governments in developing and maintaining resources to provide health care through general taxation revenue on the other (Mgbe & Kelvin, 2014). World Health Organization (WHO) has been giving tremendous support and cooperation to nations that pursue their citizen’s welfare through health insurance. They further noted that, nations equally are channeling large chunk of their budget to the attainment of good health for their people.
Health insurance can be categorized as social (or government) health insurance and private health insurance. Where a system is financed by compulsory contributions mandated by law or taxes and the system provisions as specified by legal status, it is social (or government) health insurance plan. On the other hand, private health insurance is usually financed on a group basis but most plans also provide for individual policies (Adeoye, 2015).