Question

Difficulty: MediumLiteral Comprehension and Fact Retrieval

Read the passage below carefully and answer the question that follows.

The National Health Insurance Authority (NHIA) Act was signed into law in May 2022, repealing the National Health Insurance Scheme (NHIS) Act of 1999. Unlike its predecessor, which made health insurance coverage voluntary for state governments and private sector workers, the 2022 Act renders health insurance mandatory for all Nigerian citizens and legal residents. To support vulnerable populations who cannot afford premium payments, the Act established the Vulnerable Group Fund (VGF). This fund is primarily financed through basic health care provision funds, special allocations from the federal government, and health-impact taxes levied on telecommunication services and alcohol, rather than direct payroll deductions from low-income earners.

According to the passage, how is the Vulnerable Group Fund primarily financed?

  1. Through government allocations, basic healthcare funds, and specific health-impact taxes.Answer
  2. B
    Via mandatory monthly payroll deductions withheld directly from low-income workers.
  3. C
    By voluntary premium contributions collected from state governments and private enterprises.
  4. D
    Through administrative revenue generated from the repealed 1999 National Health Insurance Scheme.

Answer

The Vulnerable Group Fund is primarily financed through basic healthcare provision funds, special federal allocations, and health-impact taxes on telecommunication services and alcohol.
The correct option directly reflects the factual statement in the passage that the Vulnerable Group Fund is financed through basic health care provision funds, special federal allocations, and health-impact taxes on telecommunications and alcohol.

Step-by-Step Solution

1
Locate the sentence in the passage discussing the Vulnerable Group Fund (VGF).
The final sentence discusses the funding sources for the VGF.
Literal comprehension questions require extracting factual details directly stated in the text.
2
Identify the explicit financing sources listed for the fund.
The text lists basic health care provision funds, special federal government allocations, and health-impact taxes on telecommunications and alcohol.
Matching the explicitly stated facts to the correct answer choice ensures accurate retrieval without making unwarranted inferences.

Key Concept

Literal Comprehension and Fact Retrieval
Estimated Time:1m 0s
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