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Nazim speaks at the ceremony. (Photo/President's Office)

Aasandha costs make health burden on state, minister says

Nazim stressed the importance of ensuring that the health system benefits those in genuine need.

16 November 2024

Health minister Abdulla Nazim Ibrahim stated Saturday that the Aasandha national health insurance scheme has created a significant financial burden on the state budget due to its unlimited spending framework.

He made these remarks during the ceremony marking the elevation of Hulhumale Hospital to tertiary-level status.

Nazim emphasised that the government's health policy prioritises ensuring that even the poorest citizens in the most remote areas have access to medical care. He highlighted President Mohamed Muizzu’s efforts to reform and improve the health sector to meet these goals.

According to Nazim, the current health system requires substantial changes. He noted that President Muizzu’s administration has acknowledged the unsustainable nature of the existing system and is actively working to implement reforms.

“President Muizzu's health policy aims to transform the system into one that provides accessible and efficient treatment without overburdening the state budget,” Nazim said.

He elaborated on the financial challenges posed by the Aasandha scheme, which has been in operation for approximately 15 years:

  • Spending on the scheme has exceeded the allocated budget annually.

  • Aasandha expenditures on medicines alone account for 60% of its total spending.

  • Budgetary analyses indicate the need for significant reforms to address these issues.

Nazim stressed the importance of ensuring that the health system benefits those in genuine need. He stated that public complaints about the current system underscore the urgency for change.

“The government is taking necessary steps to address these concerns while ensuring that the health sector supports the country’s broader development goals,” he said.

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