The Nepalese Ministry of Health and Population has released NPR750m ($5.25m) for the Health Insurance Board to continue the government-run National Health Insurance Programme without interruption.
The National Programme had been facing a major crisis as more than three dozen private and community hospitals across the country had stopped insurance-based healthcare services.
The scheme, introduced in 2016, caters to millions of Nepalese citizens, especially those at the lower margins of society. The suspension of the services by private hospitals had directly affected millions and pushed them into financial distress.
Media reports say that the amount was generated by reallocating budgets from several other healthcare programmes planned for the current financial year.
Nepal Health Insurance Board Executive Director Dr Krishna Prasad Paudel told the media, “We have secured some funds from the Health Ministry and also expect an additional amount to address ongoing problems of the health insurance programme.” Dr Paudel said the Board is expecting additional NPR1bn to continue the programme.
According to an earlier news report the Health Insurance Board had acknowledged that it owes healthcare providers nearly NPR11bn in unpaid claims. Hospitals say they were forced to halt services under the insurance scheme after failing to manage medicines, medical equipment and human resources due to non-payment.
According to the Board, nearly 92% of those enrolled in the scheme are currently using the programme's services, creating pressure on limited financial resources. Thus, there is a need to revise premium rates and introduce an income-based premium payment system.
The programme has often been criticised as it is operated more like a social welfare scheme rather than a sustainable insurance system. According to the Board, the arrears that are payable to the private healthcare providers could total NPR26bn by the end of 2026.