June 16: Finance Minister Dr Prakash Sharan Mahat, while presenting the budget for the fiscal year (FY 2023/24)  on May 29, had said that the government will prepare a work procedure within the current fiscal year to avoid duplication between health related social security programs and health insurance.

In Nepal, state-owned organizations such as the Social Security Fund, Employee Provident Fund, Citizen Investment Trust and others have been conducting health insurance programs for their members under the social security program.

As the government intends to avoid duplication of social security program and health insurance program, the fate of the health insurance program that these organizations are running have become uncertain. The budget announcement has caused confusion among all.

Joint spokesperson for the Ministry of Health and Population Dr Samir Adhikari says that the social security programs provided by the government and the social security programs run by other organizations are different.

"Therefore, the ministry is of the opinion that the health insurance program under the social security program currently being operated by various organizations should not be abandoned," he said.

In his budget speech, Finance Minister Mahat said that social security programs including health insurance, which are currently in operation, will be continued to ensure minimum basic health services to the citizens.

“Health insurance program will be conducted from government and community hospitals as well as hospitals run by cooperatives. Such social security programs will gradually be brought under the scope of health insurance,” Minister Mahat said, adding, “Health insurance program will be restructured and made sustainable.”

Damodar Prasad Subedi, the spokesperson of the Employees' Provident Fund, says that the social security program conducted by the fund should not be abandoned as it is the fund's own program.

“The social security program we are running is based on profit. We will run the program as long as the fund is profitable," he said, adding that the government instead of cancelling the program that the fund is running has increased the scope of the program through the budget.

Now other sectors are also providing health insurance facilities under the social security program. Therefore, spokesperson Subedi believes that the government's strategy could be to integrate all such programs.

Spokesperson of the Social Security Fund (SSF), Vivek Panthi, said that the health insurance program under social security mentioned by the government in the budget and the program currently being conducted by the SSF are different.

“The program being conducted by the fund is based on contributions. The budget clearly mentions that the work of the SSF will be expanded instead of curtailing it," Panthi said, adding, "There are health insurance programs under various ministries as well. Therefore, it is our understanding that the government does not want duplication between those programs and the social security program through the budget.”

The spokesperson of the Health Insurance Board, Shambhu Prasad Gyawali, says that the government's policy is to consolidate the social security programs that are scattered under the Ministry of Health and Population in the budget of the upcoming fiscal year.

“Currently, the ministry is conducting health insurance programs for various categories including the poor, mothers, girls, and senior citizens. The same patient can be paid twice under different programs," he said, "So, the government is going to implement a one-way policy so that there is no duplication in such programs."