Gov’t Expenditure on Aasandha Increases by 60% in Five Years, Minister Reveals

Minister of Social and Family Development Dr. Aishath Shiham disclosed that government spending on the Aasandha healthcare scheme has surged by 60% over the past five years, during today’s parliamentary session. 

MP Rozaina Adam of Addu City Meedhoo raised concerns regarding the decision to extend Aasandha coverage to Thailand, prompting scrutiny during the session.

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Dr. Aishath acknowledged shortcomings in the current framework of the state-sponsored insurance plan, citing inefficiencies leading to expenditure wastage. She emphasised the consistent annual increase in government spending on the insurance scheme, affirming ongoing efforts to overhaul and improve its functionality.

Highlighting specifics, Dr. Aishath revealed that while MVR 1 billion was budgeted for Aasandha in 2023, the actual expenditure reached MVR 2.3 billion. Notably, a significant portion of the allocated funds, amounting to MVR 1 billion, was directed towards the purchase of medicine. The minister underscored that medicine procurement costs were substantially higher than the standard market rates in the South Asian region, attributing this to the relatively elevated prices in the Maldives.

Furthermore, Dr. Aishath pointed out a 40% increase in healthcare scheme expenses by the end of the previous year compared to 2018 figures, indicating a growing financial burden.

Commenting on the government’s healthcare expenditure relative to national GDP, Dr. Aishath noted a level akin to more developed countries, surpassing the expenses incurred by other nations in the region.

Despite significant investments in medical insurance, Dr. Aishath acknowledged continued public appeals on social media platforms for financial assistance, particularly for serious medical conditions.

The ministry is actively exploring cost-cutting measures, with a focus on ensuring essential services under Aasandha remain accessible. Collaborative efforts involving foreign expertise and relevant stakeholders are underway to implement comprehensive reforms.

In the 2024 state budget, MVR 1.9 billion has been allocated for Aasandha, with projections indicating a potential increase to MVR 3.4 billion if austerity measures are not upheld, as per the Ministry of Finance.

Finance Ministry data revealed that Aasandha incurred the highest expenditure last year, consistently exceeding budgetary allocations by 20% annually over the past five years. Typically, the state allocates approximately MVR 500 million for medicine procurement under Aasandha.