Health Ministry Reroutes Funds to Rescue Financially Strained Health Insurance Program

Kathmandu. The Ministry of Health and Population has initiated efforts to save the financially troubled Health Insurance Program by reallocating 750.912 million rupees from the ministry's ongoing programs.

Ministry Spokesperson Dr. Prakash Budhathoki informed that 750.912 million rupees have been reallocated from 22 different headings to save the Health Insurance Board.

'The Health Insurance Program faced a financial crisis. The need to save the Insurance Board became apparent. Therefore, we have reallocated 750.912 million rupees from 22 headings currently active in the ministry,' Spokesperson Dr. Budhathoki told Ratopati. 'We have asked other ministry divisions and departments to look at the budget available for reallocation. Simultaneously, we are lobbying the Ministry of Finance to find budget available for reallocation from other ministries and provide it to health insurance.'

The ministry can reallocate funds from the current fiscal year's budget. Spokesperson Budhathoki stated that the reallocation was done in accordance with that provision, taking funds earmarked for less critical headings.

The Insurance Board has reached a state where it cannot pay service provider hospitals. Following the board's halt in payments, many hospitals have stopped participating in the health insurance programs. Subsequently, the ministry took an interest in this matter and cut various programs of the current fiscal year to reallocate funds to the Health Insurance Board.

Spokesperson Dr. Budhathoki informed that the board currently has a liability equivalent to 11 billion rupees to pay service provider hospitals. He added that this liability is increasing at a rate of 2 billion rupees every month.

The ministry, facing pressure after major government hospitals began withdrawing from the insurance program citing financial crisis due to non-receipt of health insurance payments, has started an effort to save it by reallocating at least a small amount of funds.

As per the ministry's decision, the Ministry of Finance has already reallocated and sent the funds to the health sector.

A few days ago, Prime Minister Sushila Karki also showed concern regarding health insurance, calling a meeting of the concerned bodies and directing that the necessary funds for the Insurance Board be arranged, even if it requires borrowing.

Health Ministry Spokesperson Dr. Budhathoki informed that the reallocated headings range from 500,000 rupees to 500 million rupees, and cutting these programs will not have a major impact.