ArmInfo.The World Bank loan funds will be used to support the universal health insurance implementation program in Armenia. The draft law of the Republic of Armenia "On Ratification of the Loan Agreement "Implementation of the Universal Health Insurance Program" between the Republic of Armenia and the International Bank for Reconstruction and Development (IBRD) was approved by the Government of Armenia on September 12.
As stated in the background information to the document, the loan agreement was signed between the Republic of Armenia and the IBRD on July 25, 2024.
The objectives of the loan program worth 102 million euros ($110 million) are to support the Republic of Armenia, in particular the Ministry of Health of the Republic of Armenia, in the implementation of comprehensive health insurance, improve the quality and implementation of primary health care, increase the efficiency of healthcare spending and increase the availability of medical services for the population. This loan will support the implementation of the Five-Year Action Plan (2021-2026) of the Government of Armenia and is part of the national strategy for the development of the healthcare system.
The credit program is results-oriented (the financing instrument "Program for Results" - PforR will be used), i.e. the funds will be spent (allocated) if previously agreed and defined goals/indicators are achieved. The preparation of the credit program package took about a year, and the indicators were developed as a result of joint work and coordination of the Ministry of Health, the Ministry of Finance and the World Bank.
It is also important to note that the need for the program and the achievement of the set indicators depend on the adoption of the law , the document says.
The project completion date is September 30, 2029.
On February 2, 2023, the Armenian Cabinet approved the Concept on the implementation of the Universal Health Insurance (UHI) proposed by the Ministry of Health, according to which the implementation of the system was planned for the next 4 years. 2023 was considered as a year, and 2024-2026 were called the with the full implementation of the UHI in 2027. According to the plan, the implementation phase of the system should begin in July of this year, in connection with which the state budget for 2024 has planned allocations of about 18 billion drams. However, the implementation was postponed until 2025.
As Samvel Kharazyan, co-author of the concept for the introduction of the Universal Health Insurance (UHI) told an ArmInfo correspondent in June of this year, the cost of compulsory medical insurance in Armenia will be about 164,400 drams per year. Monthly payments to the insured person will be 13,700 drams. At the same time, a system of subsidies will be in effect for people with low incomes: the state is ready to subsidize insurance premiums in the amount of up to 60% of the cost of the policy for people with a monthly income of no more than twice the minimum wage. The subsidy for people with a monthly income in the range of 150-300 thousand drams (gross salary) will be 40%. And people with higher incomes will have to pay the premiums themselves in full. A subsidy of 20% is also provided for each person affiliated with the insured person (family members) in the event of joining the system.
Medical insurance in Armenia will cover both citizens of the country and residents of the RA (from the point of view of medical insurance, these are persons who are actually in the country for at least 183 days during 12 consecutive months preceding the moment of insurance). However, working citizens will not pay compulsory medical insurance contributions for the unemployed. In particular, if a citizen does not work - is not registered with the tax authority and has no income, is not included in any social assistance group, then he is entitled to a minimum package, which will include emergency services, services for diseases that pose a danger to society and those that are necessary in the event of infectious diseases: tuberculosis, infectious services, the same maternity hospital, some outpatient services. He will have to pay for the rest of the services out of his own pocket.
In 2025, according to preliminary estimates by the Ministry of Health, 130 billion drams will be required from the state treasury to subsidize contributions for those under 18, beneficiaries of the social package, people with disabilities (the latter may also include pensioners) and persons included in the social assistance system (about 1.2 million people). From 2026, another 600 thousand beneficiaries are expected to join the insurance system - people aged 63 and older, as well as employees of budgetary organizations, and budgetary allocations will amount to approximately 230-240 billion drams. From 2027, when hired workers will also be included in the VMS (plus 500-600 other people), the state will need about 260-270 billion drams to finance subsidies for insurance contributions of about 2.4 million people.
