Government Targets to Payout NPR 12 Billion Health Insurance Next Month

Kathmandu — The government plans to clear NPR 10 billion to NPR 12 billion in outstanding health insurance payments by mid-September, as part of efforts to strengthen the financial sustainability of the national health insurance program.

Speaking at a meeting of the House of Representatives’ Education, Health and Information Technology Committee, Health and Food Safety Secretary Dr. Bikash Devkota said around NPR 24 billion to NPR 25 billion in health insurance claims had already been paid during the previous fiscal year. Of the roughly NPR 15 billion still outstanding, NPR 10 billion to NPR 12 billion is expected to be disbursed by mid-September after the required verification process.

The government also plans to reduce the insurance’s spending on private hospitals by improving services at public health facilities. Although only about 7 percent of insured beneficiaries seek treatment at private hospitals, they account for nearly 25 percent of total health insurance expenditure, according to ministry data.

To improve the scheme’s long-term viability, the government is preparing to introduce payroll-based premium deductions for formal sector employees while continuing to subsidize premiums for low-income households. The Health Insurance Board estimates the measures could generate an additional NPR 2 billion to NPR 3 billion in annual premium income.

The government is also drafting amendments to the Health Insurance Act to provide free basic health check-ups and comprehensive health screening services through local-level basic hospitals under the insurance program.