1% of Federal Hospital Development Committee’s Income to Boost Health Insurance Fund

Kathmandu – In a move to strengthen Nepal’s health insurance system, Health and Population Minister Pradeep Poudel has decided to allocate 1% of the total income of the Federal Hospital Development Committee to the Health Insurance Fund. This ministerial decision, made today aims to activate the fund, which has remained inactive despite being mandated by the Health Insurance Act.

The Ministry of Finance has approved this measure, paving the way for the Health Insurance Board to access additional financial resources. Until now, the fund relied solely on allocations from the Ministry of Health and Population.

Minister Poudel emphasized that fortifying the health insurance fund is crucial for enhancing the effectiveness of the national health insurance program. He also proposed further measures to reinforce the fund, including introducing progressive premiums, utilizing government medical assistance, and contributions from different levels of government. Additionally, he suggested that employees receiving government salaries should contribute 1% of their earnings, matched by the state, while revenue from taxes on health-harming substances could also be directed into the fund.

Ministry spokesperson Dr. Prakash Budhathoki expressed confidence that the latest decision will contribute significantly to stabilizing and expanding the country’s health insurance program.