Health Insurance Board running out of funds as liabilities soar

KATHMANDU: The Health Insurance Board appears to be facing a serious financial crisis, with only Rs 1 billion in its bank account against liabilities totalling Rs 16.45 billion as of mid-February.

Organizing a press meet in Kathmandu on Sunday, the Board said it owes Rs 16.45 billion to various hospitals implementing its health insurance program. “Hospital expenses amount to around Rs 2 billion per month. Our expenditure is 15 times higher than our revenue,” said Dr Raghu Raj Kafle, executive director of the Health Insurance Board. “Limited revenue sources and a deficit budget have created major challenges for us.”

Since the Board’s inception nine years ago, a total of 8,952,135 individuals have enrolled in the health insurance program. “The number of active insured individuals currently stands at 5,753,817,” Kafle said.

He added that the average annual premium paid per family is Rs 3,800, while the average payout for services availed per family is Rs 8,350.

A total of 404 government hospitals, 48 private hospitals and 33 community hospitals provide treatment to the health insurance policyholders.