The Oyo State Health Insurance Agency was established as a conscious effort of the State Government to ensure access to qualitative health at an affordable cost through various prepayment systems to all residents of Oyo State, Nigeria. The Agency was established through Oyo State Health Insurance Law 2016, responsible for defining the minimum standard of healthcare plan that should be available to every resident of Oyo State at an annual cost of registration for the scheme depending on the Benefit plan chosen (4). Health Insurance is a contract that requires an insurer to pay some or all of a person’s healthcare costs in exchange for a premium (3). The pooling system of funds and resources which allows shared risk is fundamental to the concept of insurance. It allows the higher costs of the less healthy to be offset by the relatively lower costs of the healthy, either in a plan overall or within a premium rating category. In general, the larger the pool, the better (1). Therefore, the Scheme has what is known as the Formal and the Informal Sector. The Formal sector comprises of enrollees whose premium are paid for by deductions from their income as civil servants or government workers. The Informal sector on the other hand comprises of enrollees from private sectors, individuals and companies. The system by which informal sector make payment for enrolment is called ‘fee-paying’.