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Health Minister Paudel allocates 1% of hospital revenue to health insurance fund

Minister Poudel explained that the fund would now be operational, with the revenue being directly deposited into it.

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KATHMANDU: Health and Population Minister, Pradeep Paudel, has announced a major decision to contribute one percent of the total revenue from the Federal Hospital Development Committee to the Health Insurance Fund.

This decision, made during a recent cabinet meeting, aims to activate the Health Insurance Fund, which, despite being outlined in the Health Insurance Act, has remained inactive.

Minister Poudel explained that the fund would now be operational, with the revenue being directly deposited into it.

The Ministry of Finance has already given its approval, ensuring that the Health Insurance Board can access these additional resources.

Until now, the Health Insurance Fund has had no active source of income, relying solely on funds provided by the Ministry of Health and Population.

Minister Poudel expressed confidence that strengthening the Health Insurance Fund is essential for improving the effectiveness of the health insurance program.

Furthermore, Poudel mentioned that the government would continue improving the health insurance system, based on the recommendations from the recently released Health Insurance Reform Suggestion Task Force report.

The report suggests that one percent of government employees’ salaries should be contributed to the fund, with the state matching this amount.

It also recommends that taxes from health-related substances be directed into the fund.

Ministry spokesperson Dr. Prakash Budhathoki stated that this new decision will play a vital role in strengthening the Health Insurance Fund and boosting the overall effectiveness of the health insurance program in the country.