KATHMANDU: As the government-run health insurance program continues to stagnate due to a lack of funding, a new proposal by Health and Population Minister Pradeep Paudel has sparked public interest. Minister Paudel has suggested that 50 paisa should be allocated to health insurance every time a person recharges their mobile balance with Rs 100.
Experts have pointed out that this proposal is a viable option, given the urgent need to raise resources for the struggling program. The government has failed to release even half of the amount required to pay hospitals for services, leaving billions of rupees in outstanding dues.
Minister Paudel, who has been advocating for reforms to make the health insurance program more effective, has repeatedly expressed concerns about the financial challenges.
At an event in Jhapa on March 2, Minister Paudel highlighted the crisis, stating that when he took office, the government owed Rs 11 billion in insurance liabilities from the previous year, but only Rs 7.5 billion was allocated for the current fiscal year. He questioned how the program could be sustained under such circumstances.
“The budget has not been allocated to clear last year’s payments. How will we manage expenses this year?” he asked. “If the insurance program is to function properly, the government should allocate Rs 40 billion in the budget, which is six times more than the current allocation of Rs 7.5 billion.”
Health Ministry spokesperson Prakash Budhathoki confirmed that the ministry is exploring alternatives to sustain the program.
“The budget for insurance was insufficient, and the government was not prioritizing it. Therefore, we are now considering different funding sources, such as a levy on mobile recharges, fuel purchases, or taxes on cigarettes,” he told Khabarhub.
Budhathoki also stated that further steps would only be taken after the appointment of the executive director and chairman of the Health Insurance Board.
“The minister brings innovative ideas and plans, but ultimately, everything depends on what direction the government takes,” he said.
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