From next year, individuals earning more than MVR 60,000 per month, or those subject to income tax, will be required to contribute a specific amount toward Aasandha.
The government has announced plans to introduce a progressive contribution model for high-income earners from next year to help reduce the cost of free medical treatment currently funded by the state.
Aasandha health insurance scheme is the largest state expenditure on subsidies, and the government has proposed significant reforms to ensure its sustainability.
According to the 2025 budget submitted to Parliament, two key changes to Aasandha are planned to take effect from April, aiming to save approximately MVR 600 million annually.
From next year, individuals earning more than MVR 60,000 per month, or those subject to income tax, will be required to contribute a specific amount toward Aasandha.
This change, the Finance Ministry states, will make the system more equitable and ensure that the most financially vulnerable have access to healthcare without added costs.
The model is based on successful implementations in developed countries, such as South Korea, where pre-payment contributions are made to the revenue authority along with income tax.
A co-pay system will also be introduced for wealthier individuals seeking certain services. High-income earners will pay a portion of outpatient and non-essential medication expenses, capped at a maximum annual out of pocket expenditure, beyond which services will remain fully covered.
Contribution rates and annual expenditure caps will vary by income level. Exemptions will be provided for minors under 18, individuals over 65, and those undergoing treatment for chronic illnesses.
When seeking care from private healthcare providers, Aasandha covers a fixed portion of the bill, with out of pocket expenses varying by provider.
The Finance Ministry plans to standardize these rates and the amounts deducted by Aasandha. Adjustments will also be made to the medical welfare system administered by the National Social Protection Agency (NSPA).
For high-income individuals, NSPA benefits will be provided as interest-free loans rather than subsidies.
In 2023, the government allocated MVR 2.6 billion to Aasandha, although the 2024 budget allocates MVR 1.9 billion. Financial experts have advised making Aasandha more sustainable due to escalating costs in recent years.
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