Deputy Speaker: Aasandha in a state beyond reform; needs be stopped

Parliament’s Deputy Speaker, Dhiggaru MP Ahmed Nazim, on Monday, said the national health insurance scheme is in a state beyond reform while underscoring the need to introduce a new scheme.

While debating at Monday’s parliamentary sitting on the MVR 56.6 million state budget proposed for next year – Nazim stressed that a huge expenditure is incurred for Aasandha. He added that Parliament’s Public Accounts Committee’s probe into Aasandha identified that the national health insurance scheme is a state beyond reform.

“In reality, Aasandha is suffering from cancer. We need to think about an alternative. We need to strongly consider letting for of Aasandha and starting over just as we let go of Air Maldives and other companies before,” he said.

Speaking further, Nazim said it is certain there is an intermediary with respect to the contracts executed between Aasandha and foreign hospitals. He backed up his argument citing the unbelievably high prices charged. In this trajectory, he emphasized his belief that there was no point in the government upholding agreements with benefits to a third party.

For these reasons, Nazim said issues within Aasandha system need to be resolved even if it requires incepting a new company and revoking the previously made agreements.

Nazim’s remarks come amid efforts by the government to reform Aasandha scheme that has long remained as a financial burden to the state. The state budget proposed for next year also includes reforms to reduce the expenditure incurred for Aasandha.

5.1 percent of the recurrent expenses in the state budget proposed for next year is allocated for Aasandha.

According to the budget book, patients belonging to the top income group will either be charged a specific amount for medicine and outpatient services or will need to bear the whole cost on their own.

Meanwhile, patients who pay income tax will be charged a pre-payment for Aasandha, so they can contribute towards financing the scheme.

The Finance Ministry expects the reforms will help cut down spending on Aasandha.

Additional reforms planned for next year include setting and harmonizing package rates for services from private hospitals and medical facilities.

MVR 1.9 billion was allocated for Aasandha this year which was exhausted before the end of the year.

A total of MVR 838 million was spent on Aasandha in the first quarter of this year, MVR 823 million in the second quarter, and MVR 903 million in the third quarter. In total, over MVR 2.5 billion has been allocated to Aasandha so far this year.