Oyo State Health Insurance Agency was established on 18th of August, 2015, backed by an enabling law on 1st of December, 2016. The law stipulates that health insurance is mandatory for every resident of Oyo State.

Oyo State Health Insurance Scheme was subsequently flagged off on the 25th of May, 2017. The scheme was designed to provide financial risk protection against huge medical bills, reduce out of pocket expenditure on healthcare, improve access to quality healthcare services for the residents of the State and to provide solidarity between the sick and the healthy, rich and poor, employed and unemployed, young and the aged as part of strategies for attaining Universal Health Coverage in the state.