Nepal Health Insurance Reform: 1% Hospital Funds to Strengthen System
30th March 2025, Kathmandu
The Ministry of Health and Population in Nepal has made a major decision to improve the country’s health insurance system. According to a new ruling by Minister Pradip Poudel, 1% of the total revenue from federal hospitals will now be directed to the Health Insurance Fund.
Nepal Health Insurance Reform
The aim is to make the fund more active and support the development of a stronger health insurance system.
Strengthening the Health Insurance Fund
Minister Poudel explained that although the Health Insurance Act had provisions for a fund, it had remained inactive. To address this, the ministry decided to allocate 1% of federal hospitals’ revenue to make the fund more robust. This decision is expected to improve the effectiveness of health insurance programs and increase the resources available for covering healthcare costs.
The Health Insurance Fund has faced challenges due to a lack of resources. In the past, the Health Insurance Board had been dependent on the Ministry of Health for funding. This new measure will enable the board to access more financial support and help ensure the sustainability of the health insurance program.
Approval from the Ministry of Finance
This initiative has gained approval from the Ministry of Finance. The ministry sees the decision as an important step toward improving health insurance in Nepal. With additional resources, the Health Insurance Fund will be better equipped to support citizens in managing medical expenses, improving access to quality healthcare across the country.
Minister Poudel emphasized that the decision will play a key role in activating and strengthening the Health Insurance Fund. The allocation of 1% of hospital revenues is just the first phase of a broader plan to enhance the country’s health insurance system. By securing more resources, the fund will be better able to provide comprehensive coverage and financial protection to the public.
Further Contributions to the Fund
In addition to the 1% contribution from hospitals, the government is exploring other ways to raise funds for the Health Insurance Fund. Minister Poudel has suggested a progressive premium system, where additional contributions could come from other government sources. He proposed that the government could provide funds for medical assistance, and other government levels could contribute to ensuring the fund’s sustainability.
There are also plans to explore options like allocating a portion of salaries for state employees and collecting taxes from health-damaging products. These measures are seen as potential ways to increase the fund’s resources and ensure its long-term viability.
Health Insurance Reform Plans
Minister Poudel has stated that the decision to allocate revenue from hospitals to the fund is only the beginning. The government plans to continue reforming the health insurance system. The goal is to improve access to healthcare services and increase the effectiveness of the insurance program. In the coming months, the Health Insurance Reform Task Force will review the system and provide recommendations for further improvements.
The Ministry of Health is focused on building a stronger health insurance program to provide better services to the people. This effort is expected to make the system more sustainable and efficient.
Conclusion
With the new decision, the Health Insurance Fund is set to receive more support. The government’s move to allocate 1% of federal hospitals’ revenue is just the start of a broader plan to strengthen the health insurance program. As the government continues to explore additional funding options, the Health Insurance Fund will become a vital resource for improving healthcare access and financial protection for the people of Nepal.
For more: Nepal Health Insurance Reform
