It is however not clear whether the payment will cover several months of arrears owed them.
There have been several threats by service providers to withdraw services to NHIS card holders over unpaid claims.
“Funds have been released to the National Health Insurance Authority for onward transmission to the various hospitals nationwide,” he confirmed.
He said the providers are “waiting patiently” for the amount to hit their accounts to know whether government is clearing all its debts.
The NHIS policy was introduced in 2006, to replace the cash and carry system.
However the policy has gone through turbulent challenges over the past few years, with service providers crying over debts owed them by the NHIA.