The Government of Nepal has recently announced an allocation of NPR 750 million (approximately USD 5.25 million) to support the continued operation of the National Health Insurance Programme. This funding will be channelled directly through the Nepal Health Insurance Board, ensuring that this government-led initiative can continue uninterrupted across the country.
Launched in 2016, the programme primarily targets low-income citizens, providing them with access to essential healthcare services. However, this year the initiative faced a severe crisis as private and community hospitals nationwide suspended insurance-based services. As a result, hundreds of thousands of Nepalese were deprived of crucial medical care, compounding the financial strain on vulnerable households.
Media reports indicate that the NPR 750 million allocation has been drawn from budget reallocations within other ongoing health projects in the current fiscal year. Dr Krishna Prasad Paudel, Executive Director of the Nepal Health Insurance Board, stated,
“We have secured partial funding from the Ministry of Health. Additionally, we anticipate receiving an extra NPR 1 billion to address ongoing challenges.”
Current data show that nearly 92% of registered citizens are actively using the programme’s services, placing significant pressure on the limited financial resources available. Experts suggest that there is an urgent need to review premium rates and introduce an income-based premium system to ensure sustainability.
Professional analysts have frequently criticised the scheme’s operational model, which resembles a social welfare initiative rather than a commercially sustainable insurance programme. According to the Board, outstanding payments to private hospitals could reach NPR 26 billion by 2026, heightening the risk of service interruptions across the healthcare system.
Key Information: Nepal Health Insurance Programme
| Item | Details |
|---|---|
| Year Launched | 2016 |
| Recent Funding | NPR 750 million (~USD 5.25 million) |
| Expected Additional Funding | NPR 1 billion |
| Outstanding Hospital Dues | NPR 11 billion |
| Projected Dues by 2026 | NPR 26 billion |
| Active Programme Users | ~92% of registered citizens |
| Main Challenges | Funding shortages, shortage of medicines and equipment, human resource limitations |
Through this allocation, the Nepalese government has taken a crucial step to stabilise the health insurance programme and maintain healthcare access for low-income populations. However, long-term solutions will require a comprehensive review of the premium structure, financial sustainability measures, and stricter oversight of hospital arrears.
Health analysts remain cautiously optimistic that with proper budgetary allocation and administrative coordination, the Nepal Health Insurance Programme can continue to operate effectively, ultimately benefitting a broader segment of the population.