Armenia launches universal health insurance system
Medical insurance in Armenia
Beginning this year and by 2027 the entire population of Armenia will have health insurance, regardless of solvency. Members of the government approved the concept and action plan on February 2.
“We have been working for almost two years to develop the most optimal and realistic model of an insurance system for Armenia. This is a major systemic reform, but practical steps have been postponed in anticipation of better times,” Minister of Health Anahit Avanesyan said.
“Proper medical care regardless of ability to pay”
The Minister of Health recalled that the introduction of an insurance system in the country has been discussed for decades. According to Avanesyan, this decision by the government in difficult times for the country proves that the government team has remained true to their belief that “institutional reforms should be carried out regardless of situations and challenges”:
“The introduction of a comprehensive health insurance system is primarily due to the need to provide appropriate and timely services to every citizen in need of medical care, regardless of solvency, sex, age or place of residence.”
The rationale for the project emphasizes that health spending accounts for more than 25% of the consumer spending.
“Treatment is delayed until the last”
This is how, according to the Minister of Health, the majority of Armenians approach health problems.
According to Anahit Avanesyan, the reason is often the “ineffectiveness of the current mechanism” for reimbursement of health care costs:
“We are forced to use much more expensive services, and it is not always possible to ensure a favorable outcome of treatment.”
“The Best Way to Achieve Goals”
It was decided to introduce the universal health insurance system in stages, in the belief that it is “the most optimal way to achieve short-term and long-term goals.”
2023 is a preparatory stage. It is planned to revise and supplement the package of already developed services by the end of the year and to approve prices.
“Prices will not be calculated as a percentage of people’s income. A fixed cost of services will be determined, as well as the amount of co-financing from the state will be determined,” Avanesyan said.
In 2024, the ministry expects to have a group of registered citizens and the process of voluntary insurance will begin. In 2025 the state intends to take care of insurance for pensioners.
The voluntary insurance process will continue until 2027. The Armenian government plans that by the end of this period compulsory insurance will cover the entire population of the country.
Expected Results
According to the rationale for the draft decision, the government expects
⦁ “a decrease in morbidity and mortality rates,
⦁ increase in average life expectancy,
⦁ reduction of the number of people with disabilities due to health problems, which will contribute to the sustainable development of human capital and economic growth.”
The main goal of the decision to launch universal insurance is to “ensure the financial availability of basic medical services for all groups of the population, which, in turn, will ensure the preservation of the health of the country’s inhabitants.”
Re-equipment of at least 50 medical centers
This item is also on the Ministry of Health’s list of tasks. The construction, reform and re-equipment of medical centers is also planned to be completed by 2027.
“Construction is already underway in thirteen existing medical centers. Projects for the construction of twenty new outpatient clinics and seven medical clinics are in the process of being developed,” the Minister of Health said.
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Medical insurance in Armenia
