Federal Hospitals to Contribute 1% of Income to Health Insurance Fund

Health Minister Pradip Paudel has mandated that one percent of the income generated by the Federal Hospital Development Committee be deposited into the Health Insurance Fund.

Through a ministerial decision, Minister Paudel also directed the activation of the Health Insurance Fund, ensuring that all insurance-related deposits are processed through it. Despite being established under the Health Insurance Act, the Fund had remained inactive until now.

This move is expected to provide additional financial resources to the Health Insurance Board, especially since the Ministry of Finance has already approved the provision. Previously, the Fund relied solely on allocations from the Ministry of Health and Population.

Minister Paudel emphasized that strengthening the Health Insurance Fund is essential for enhancing the effectiveness of Nepal’s health insurance program. He further stated that the government would implement additional reforms based on the recommendations of the Health Insurance Reform Task Force.

The task force’s report, which was recently made public, suggests that government employees contribute one percent of their salaries to the Fund, with the state covering an additional one percent.

Ministry spokesperson Dr. Prakash Budhathoki expressed confidence that the decision would play a significant role in reinforcing the Health Insurance Fund and improving Nepal’s healthcare financing system.