WB provides $110 million loan to support Enabling Universal Health  Coverage Program for Armenia

ArmInfo.The World Bank's Board of Executive Directors approved a loan in the amount of $110 million  equivalent (EUR 102 million) to support the Enabling Universal Health Coverage Program for Armenia, the Banks press service reports.  According to the source,  the operation aims to improve the quality of primary health care, ensure accessible health care services across the country and increase the efficiency of the government's spending on healthcare.

The operation supports the implementation of the Five  Year Action (2021-2026) Plan of the Government of Armenia and is a  subset of the national Healthcare System Development Strategy.   Although Armenia's health indicators have improved in recent decades  for maternal and child health outcomes, non-communicable diseases  still account for the largest share of deaths and illnesses. Low  government spending on healthcare and the inefficiencies in the  health system contribute to high costs, resulting in high  out-of-pocket payments. Armenia's share of these payments for health  out of current health expenditures (81.4 percent in 2021) is among  the highest in the world.  "Armenia's high private health care costs  are an outlier in the world with adverse effects on the quality of  services provided to citizens. Ongoing reforms intend to create  better financial and regulatory incentives for the provision of  quality healthcare," said Carolin Geginat, World Bank Country Manager  for Armenia.   "The broader reform has the potential for  fundamentally altering the disease patterns within the Armenian  population and making health care more affordable for the  population." The approved operation will use a Program-for-Results  (PforR) financing instrument, which links the disbursement of funds  directly to the achievement of specific program results. It will  support an ambitious health reform in the country that includes  introducing mandatory health insurance. In addition to the measures  for improving the quality of health services, the reforms will aim to  increase the efficiency of government health spending such as the  adoption of external reference pricing mechanism, which applies  international price comparisons to selected publicly financed  essential medicines.  The project aims to benefit the entire  population of Armenia, who will receive better quality and more  affordable health services to prevent non-communicable diseases. Some  of the key intended outcomes include introduction of a system where  primary health care facilities are financed based on their  performance, in terms of both quality and coverage indicators,  improved training of nurses and family physicians, a reduction of the  prices for prescribed drugs and decreasing out-of-pocket spending as  a share of current health expenditures, the source notes.

Notably, in November 2023, RA Minister of Health Anahit Avanesyan  announced during a hearing in the RA National Assembly that the  universal medical insurance system will be launched from the middle  of 2024, for which 18 billion drams will be allocated. It was  previously reported that the system would be fully operational in  2027. In particular, it was planned that in 2024, most of the  beneficiaries would become its participants, in 2025, pensioners  would join it, and in 2026, participants in the voluntary health  insurance system. Together with citizens, the RA government will also  participate in the accumulation of funds. For these purposes, a Fund  will be established that will manage the funds of the beneficiaries.  A Council headed by the RA Minister of Health will also be formed  under the Fund.