The Impact of Health Insurance Policies on Catastrophic Health Expenditures in Nigeria

Catastrophic health expenditures (CHE) remain an enormous problem of financial instability to households in Nigeria despite the introduction of health insurance policies. This research assesses the impact of health insurance policies especially the National Health Insurance Scheme (NHIS) on CHE in Nigeria. A desk-based research approach is employed, and secondary data is collected from national databases, policy documents, and reviewed literature to carry out the study. Results show that while health insurance has ensured some financial protection, the coverage is still limited, particularly in the informal sector which makes the incidence of CHE to remain high. Policy gaps and challenges of implementation together with inequities in access are identified as key barriers to accomplishing financial protection. The study concludes that a large proportion of Nigerians suffer significantly in the quest for seeking healthcare. It recommends expanding equitable insurance coverage particularly to vulnerable populations, reducing reliance on out-of-pocket (OOP) payments, and strengthening policy implementation and monitoring.