KATHMANDU: Minister for Health and Population Pradip Paudel has acknowledged significant challenges in sustaining Nepal’s health insurance program, citing a lack of adequate budget allocation as a primary hurdle.
Speaking in the House of Representatives during a discussion on a public importance motion registered by MP Dr. Sunil Sharma, Minister Paudel stated that a report with various options has been prepared to address the issue.
The report, developed by the Insurance Reform Suggestion Task Force, outlines strategies to pay off past arrears and ensure sustainable funding for the program.
Minister Paudel revealed that it would take Rs 40 billion to fully reform the health insurance system, including clearing existing arrears. He emphasized the importance of either allocating the entire amount upfront or finding alternative ways to generate regular income.
“We must either allocate Rs 40 billion to manage the insurance or explore other avenues to ensure sustainable funding,” Minister Paudel said.
He stressed that the goal is not to replace health insurance but to strengthen it through better resource management and a unified payment system.
Minister Paudel highlighted the need to integrate funds spent by the three tiers of government on healthcare services. He pointed out that if the Rs 17 billion spent annually by the federal government and the separate budgets of provincial and local governments were combined under a single Health Insurance Fund, it would enhance financial stability and sustainability.
He further stated that since assuming office, the payment system has improved significantly, and the government is committed to clearing the estimated Rs 25 billion liability expected by next year.
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