Maldives’ 2025 Budget Introduces Health Insurance Reforms

The Maldives’ 2025 state budget outlines reforms to its health insurance system, aiming to enhance healthcare infrastructure and improve accessibility to essential services. 

The changes, which will take effect in April, focus on increasing contributions from higher-income individuals while ensuring robust support for vulnerable groups.

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A key feature of the reforms is the restructuring of subsidies, with increased funding directed towards Aasandha and medical welfare services. This shift aims to prioritise resources for those most in need, bolstering the delivery of vital healthcare services across the country.

Under the new framework, individuals earning over USD 3,894 per month or subject to income tax will contribute to healthcare costs through a co-payment mechanism. This system will apply to certain services at pharmacies and government hospitals, with contributions scaled according to income. Higher-income earners will also cover a portion of non-essential medication costs for outpatient care.

To safeguard against undue financial burden, the government has introduced caps on total out-of-pocket expenses. Exemptions will apply to vulnerable groups, including children under 18, senior citizens over 65, and individuals with chronic illnesses.

The health sector currently incurs an annual expenditure of USD 389.4 million, with USD 129.8 million to USD 194.7 million allocated to Aasandha and medical welfare services. The revised subsidy model aims to ensure sustainability by engaging higher-income groups while maintaining critical support for lower-income and vulnerable populations.

These reforms are expected to create a more equitable health insurance system, fostering long-term sustainability and improved access to healthcare for all Maldivians.