Aasandha’s Expenditure Hits MVR 838 Million in Q1 2024

Aasandha’s expenditure for the initial quarter of 2024 amounted to MVR 838 million, reflecting a 4.8 percent increase from the corresponding period last year.

The expenditure for the first quarter in 2023 stood at MVR 799 million, reflecting a notable rise this year.

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Despite the uptick in spending, Aasandha extended its coverage to a larger number of individuals during the first quarter of 2024. The health insurance service provided assistance to 276,439 individuals, compared to 273,434 individuals in the corresponding quarter of the previous year.

Moreover, Aasandha facilitated the urgent transfer of 1,599 critically ill patients between islands. Additionally, financial assistance was extended to 1,691 patients seeking medical treatment abroad.

Over the past five years, expenditure on Aasandha has escalated by 60 percent, with a 40 percent increase observed last year compared to the annual figure of 2018.

In response to the escalating expenditure, Minister of Social and Family Development Dr. Aishath Shiham stated that the government is exploring various strategies to mitigate wastage within Aasandha.

For the year 2024, the government has earmarked an annual allocation of MVR 1.9 billion for Aasandha services.

Previously, the Ministry of Finance cautioned that Aasandha’s expenditure could soar to MVR 3.4 billion by the end of the current fiscal year if stringent austerity measures are not implemented.

The expenditure under the insurance scheme reached a record high last year, surpassing the originally budgeted total by over 20 percent in the past five years.

On average, Aasandha’s expenditure on medical procurements amounts to MVR 500 million. Efforts are being made by the government to curtail these costs.

Earlier concerns raised by the World Bank highlighted the inflated prices of medicines sold over the counter at local pharmacies.