KATHMANDU, Feb 18: The Ministry of Health and Population (MoHP) is reallocating funds from its own budget to keep the health insurance service afloat after hospitals struggled to receive payments for services provided under the scheme.
Two weeks ago, the MoHP proposed transferring Rs 700 million from various health program budgets to the Ministry of Finance (MoF), with additional reallocations in the pipeline, said MoHP spokesperson Dr. Prakash Budhathoki. Federal hospitals and the Department of Health Services are expected to see program budgets adjusted. “We are prioritizing funds from programs that, even if not implemented this year, will not have a major impact,” he explained.
Unpaid claims up to mid-October forced several federal hospitals to halt health insurance services. The country’s only old referral hospital, Bir Hospital, recently decided to reduce its medicine supply from three months to just one. “Without payments for insurance services, running the hospital was impossible. This step was unavoidable,” said Dr Dilip Sharma, Director of Bir Hospital.
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Other major health institutions, including Shahid Gangalal National Heart Centre and teaching hospitals nationwide, have already suspended services, while still-operating hospitals warn they may soon face the same fate.
According to the Health Insurance Board (HIB), pending claims reached Rs 12 billion by mid-January, with an additional Rs 2 billion accumulating each month. HIB spokesperson Bikesh Malla described the Rs 1 billion already paid as “a grain of cumin in an elephant’s mouth.”
Despite measures to reduce claims, boost the insurance fund, and implement reforms, the board says government support is essential to settle pending payments. “The government has promised assistance, but there is no clarity yet on how much will be released and when,” Malla said.
The MoF said it cannot release all funds at once. Spokesperson Tanka Prasad Pandey explained, “The reallocation budget sent by the health ministry is in process. The Rs 700 million proposed by the health minister will only be released after legal and administrative approvals.”
For the current fiscal year (FY), Rs 10 billion was allocated for health insurance, with an additional Rs 1 billion added after the initial allocation was spent. However, by mid-October, the HIB was unable to clear hospitals’ claims, leaving many in uncertainty. Some claims fall outside standard procedures and cannot be paid immediately, according to Dr. Budhathoki.
He added that partial payments may be deferred to the next FY. “We will pay as much as possible this year, and any remaining dues can be cleared next year,” he said.
