Govt projects MVR 500 million savings from Aasandha reform

Finance minister Moosa Zameer announced in parliament on Monday that the recent changes to Aasandha services for privately insured individuals could result in savings of approximately MVR 500 million.

Effective from November 1, patients seeking services from healthcare providers under the Aasandha scheme are required to first utilise their private insurance coverage. Aasandha will cover costs only after the private insurance benefits have been exhausted.

The minister addressed parliament during the ongoing debate on the budget for 2025. Responding to concerns raised by members, Zameer stated that the adjustments aim to reduce inefficiencies and wastage in the Aasandha system without altering the services provided to the public.

"Some confusion seems to exist regarding these changes. With bulk procurement, enhanced monitoring, and planned reforms, we have statistics indicating that we can save close to MVR 500 million,” Zameer explained.

He also clarified concerns raised about the pension scheme. Zameer emphasised that no changes have been made to the existing pension scheme, and services remain unaffected. However, the budget for 2025 includes provisions for potential adjustments to streamline dual pension schemes in the future.

The reforms to the Aasandha system will be implemented in phases and are designed to differentiate inpatient and outpatient services. Key features of the revised system include:

Additionally, the 2025 budget includes a proposal to introduce a health contribution for Aasandha from high-income earners or those subject to income tax. This measure aims to enhance funding for the program while ensuring its sustainability.

The government maintains that these changes are intended to make the Aasandha scheme more efficient and financially sustainable while preserving its accessibility for the public.