Health Insurance Crisis Deepens as Monthly Costs Cross Rs 2 Billion: Minister Gautam

Interim Minister for Health and Population Dr. Sudha Gautam has said that the government is no longer in a position to make payments under the health insurance programme as monthly expenses have exceeded Rs 2 billion.

Addressing the 30th anniversary ceremony of Shahid Gangalal National Heart Centre on Thursday, Minister Gautam said that the budget allocated for insurance in the current fiscal year was entirely used to clear last year’s liabilities, leaving no budget at all for insurance this year. She noted that insurance claims have exceeded the allocated budget and that unlimited spending has made insurance reform unavoidable.

Stating that reform of the insurance system is essential, Minister Gautam said the ministry is already working in that direction and that she has instructed for immediate payment of insurance dues. Although insurance payments are supposed to be the shared responsibility of federal, provincial and local governments, she said the federal government alone has been bearing the burden so far, creating serious pressure on the system.

She also said that although the law clearly mandates allocating 25 percent of health tax revenue to the Health Tax Fund, the government has so far been unable to receive that amount. According to her, if 25 percent of the revenue collected from tobacco products were received as per the law, the financial crisis of the insurance programme could be largely resolved.

Minister Gautam further said that insurance cannot continue in its current form and should be reformed so that insurance services are provided only to patients referred to health institutions. She added that basic health services are constitutionally guaranteed to be free, including 98 types of medicines to be provided by primary health centres and health posts. Making patients pay for services that should be free is neither good for citizens nor for the government, she said.