Nazim Calls for Overhaul of Aasandha Scheme Amid Financial Strain

Parliament’s Deputy Speaker and Dhiggaru MP, Ahmed Nazim, has called for the introduction of a new national health insurance scheme, stating that the current Aasandha programme is beyond the point of reform.

During a parliamentary debate on the proposed MVR 56.6 billion state budget for next year, Nazim highlighted the significant financial burden Aasandha places on the government. He pointed to a recent investigation by the Public Accounts Committee, which concluded that the scheme could not be salvaged and needed to be replaced.

advertisement

“In reality, Aasandha is suffering from cancer,” Nazim said, urging lawmakers to consider alternative solutions. He suggested that the government should follow the example of past decisions, such as the termination of Air Maldives, and phase out the scheme entirely.

Nazim also raised concerns about the involvement of intermediaries in contracts between Aasandha and foreign hospitals, citing inflated costs as evidence of inefficiency. He argued that the government should not continue to uphold agreements that primarily benefit third parties at the expense of the public.

His remarks come amid ongoing government efforts to reform Aasandha, which has long been a financial burden for the state. The proposed budget for next year includes measures aimed at reducing the scheme’s expenditures, which account for 5.1 percent of the recurrent budget.

The Finance Ministry has outlined several planned reforms, including introducing new charges for high-income patients and asking taxpayers to pre-pay for the scheme. These reforms aim to reduce the financial strain on Aasandha and improve its sustainability.

In addition, the government has introduced changes to limit the wasteful use of the scheme. Finance Minister Moosa Zameer explained that individuals with private insurance seeking outpatient services will be billed first through their insurance, with Aasandha acting as a secondary payer. This change, effective from November, is expected to save the government an estimated MVR 500 million.

Despite these changes, Zameer reassured parliamentarians that the quality of services provided under Aasandha would not be affected for the general public. He confirmed that no additional costs would be passed on to citizens as a result of the reforms.

The Finance Ministry has allocated over MVR 2.5 billion to Aasandha this year, with expenses rapidly exceeding the initial MVR 1.9 billion budget. The budget for next year also includes plans to standardise service rates with private medical providers to further control costs.

With the reforms set to take effect in the coming year, the government aims to address both the financial sustainability of the Aasandha scheme and its ability to deliver quality healthcare to citizens.