Health Minister Highlights Financial Strain of Aasandha Scheme

Health Minister Abdulla Nazim Ibrahim has raised concerns over the financial strain imposed on the state budget by the Aasandha national health insurance scheme, citing its unlimited spending framework as a key challenge.

Speaking at a ceremony marking Hulhumale Hospital’s elevation to tertiary-level status, Nazim stressed the need for substantial reforms to the existing health system. He emphasised that the government’s health policy prioritises ensuring access to medical care for the most vulnerable populations, including those in remote areas.

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Nazim highlighted President Mohamed Muizzu’s commitment to transforming the health sector to achieve these goals, acknowledging the unsustainable nature of the current system.

The Aasandha scheme, operational for over 15 years, has consistently exceeded its allocated budget, with expenditures on medicines alone accounting for 60% of its total spending. According to budgetary analyses, urgent reforms are required to address these inefficiencies.

Nazim underscored the importance of targeting the health system’s benefits to those in genuine need, adding that public dissatisfaction with the scheme highlights the pressing need for change.

The government’s reform efforts, Nazim noted, aim to strike a balance between meeting healthcare needs and maintaining fiscal responsibility, ensuring long-term sustainability for the nation’s health system.