Nepal Releases Emergency Funds for Health Insurance Programme

The Government of Nepal has announced the immediate release of NPR 750 million (approximately $5.25 million) to the Health Insurance Board to ensure uninterrupted operation of the National Health Insurance Programme (NHIP), averting a looming crisis that had threatened millions of citizens.

The funding injection comes after more than three dozen private and community hospitals across the country temporarily suspended insurance-based healthcare services, citing delays in payments from the Board. The suspension had left countless patients—particularly those from lower-income households—facing significant financial and medical hardship.

Launched in 2016, the NHIP provides coverage to millions of Nepalese citizens, aiming to reduce out-of-pocket healthcare expenses and expand access to essential medical services. Yet, financial constraints have repeatedly undermined the programme’s effectiveness. Media sources report that the NPR 750 million was reallocated from several other health initiatives within the current fiscal year to address the shortfall.

Dr Krishna Prasad Paudel, Executive Director of the Health Insurance Board, stated, “We have secured some immediate funds from the Ministry of Health and Population and anticipate an additional NPR 1 billion to address the ongoing challenges within the health insurance programme.”

Financial arrears have been at the heart of the crisis. According to the Board, nearly NPR 11 billion in claims remain unpaid to healthcare providers. Hospitals have explained that non-payment has hindered their ability to procure medicines, maintain medical equipment, and retain staff, leaving them with no choice but to halt insurance-based services.

The NHIP currently serves a vast majority of its enrolled population. Approximately 92% of beneficiaries are actively using the services, which exerts considerable pressure on already limited resources. The Board has suggested revising premium rates and moving toward an income-based premium system to improve financial sustainability.

Critics argue that the programme operates more like a social welfare initiative than a conventional insurance scheme. Without structural reforms, the Board projects that total arrears owed to private providers could escalate to NPR 26 billion by the end of 2026.

Key Financial Figures of Nepal’s National Health Insurance Programme (2026 projections)

The Health Insurance Board has emphasised the urgent need for policy revisions to ensure the NHIP can operate sustainably, safeguarding access to affordable healthcare for Nepal’s most vulnerable populations.