"Allocating Rs 40 billion for health insurance in next fiscal is not feasible"

KATHMANDU, MARCH 16: Minister for Health and Population, Pradeep Poudel, has emphasized the need for an alternative approach to health insurance, citing financial constraints in sustaining the current model.

Speaking at the public launch of the Health Insurance Report and Action Plan in Kathmandu on Sunday, he stated that while the government has allocated Rs 7.5 billion for health insurance so far, the projected cost is expected to reach Rs 40 billion in the upcoming fiscal 2025/26. He noted that managing insurance in its current form exceeds the government’s financial capacity, making an alternative approach necessary.

"I don’t want to assign blame, but the reality is that the government has allocated Rs 7.5 billion for health insurance, while its estimated cost in the next fiscal's budget is around Rs 40 billion. This figure may not be feasible given the state’s financial capacity. That is why we are exploring alternatives—not to replace insurance, but to improve its structure," he explained.

Minister Poudel clarified that insurance has become an essential part of people’s lives and that the focus is on making it more efficient and sustainable rather than replacing it. The government, he added, is committed to ensuring broader access to health insurance services.

"Insurance is now an integral part of our lives. We are not seeking to replace it but to strengthen and sustain it. Our priority is to expand coverage and maximize benefits for the public," he said.

He also highlighted ongoing efforts to identify both policy-level and practical reforms needed to enhance the effectiveness of the health insurance system.