Health Programs Implementation Office to be responsible for  implementing Universal Health Coverage Loan Program

ArmInfo.  The Health Programs Implementation Office of the RA Ministry of Health has been appointed the body responsible for implementing the Universal Health Coverage Loan Program, financed by the International Bank for Reconstruction and Development. The decision was approved by the Cabinet of Ministers on November 6 at its regular meeting.

As stated in the explanatory note to the document, the loan agreement  was signed by the Republic of Armenia and the International Bank for  Reconstruction and Development (IBRD - the main lending institution  of the World Bank Group - ed.) on July 25, 2024, and entered into  force on April 30, 2025. The goal of the Universal Health Coverage  Program is to support the Republic of Armenia, and in particular the  Ministry of Health of the Republic of Armenia, in implementing  comprehensive health insurance, improving the quality and  effectiveness of primary health care, increasing the efficiency of  the country's healthcare spending, and reducing financial barriers to  accessing healthcare services.

In accordance with the Agreement and the attached documents, the  implementing agency for the loan program is the Ministry of Health of  the Republic of Armenia, represented by the state institution "Health  Program Implementation Office." The State Institution "Health Program  Implementation Office" of the Ministry of Health implements programs  and activities developed with funds provided to the Republic of  Armenia by foreign states and international lending organizations in  the healthcare sector, as approved by the government.

It is noted that since 1999, the state institution has been  implementing and continues to implement credit and grant programs  provided to the Republic of Armenia by the World Bank, the Eurasian  Development Bank, and other international donor organizations.

Within the framework of the credit program implementation, the  functions of the State Institution EDP are clearly defined. In  particular, the following: management of the day-to-day activities of  the credit program, including financial, technical, and operational  aspects; close cooperation with the Ministry of Health and other  implementing organizations, development of an annual work plan for  the implementation of the Program; preparation and submission of the  Program budget to the Ministry of Finance for inclusion in the state  budget; control, ensuring compliance of Program expenditures with  approved budgets; coordination of the preparation of annual financial  reports of the Project and their submission to the World Bank;  systematization of the collection of all achievements during the  implementation of the credit program; development of monitoring  tools; provision of environmental and social guarantees;  implementation of the procurement process of goods/works/services  provided for by the credit program, in accordance with the  legislation and procedures of the Republic of Armenia on procurement;  Preparation and submission of project progress reports to the World  Bank, etc.

The responsibilities of the Project Management Directorate (PMO)  cover all areas of the loan program's implementation.

On February 2, 2023, the Armenian Cabinet of Ministers approved the  Concept for the Implementation of the IUD proposed by the Ministry of  Health, according to which the system was planned to be implemented  within the next four years. 2023 was considered a "preparatory" year,  and 2024-2026 were designated as the "testing phase", with the full  implementation of the IUD in 2027. According to the plan, the  implementation phase of the system should begin in July 2024. And  despite the fact that in early July 2024, the World Bank announced  its readiness to provide the Republic of Armenia with a $110 million  (102 million euros) loan to support the "Achieving Universal Health  Coverage" program, the implementation of the IUD was postponed until  January 2025. On November 1, 2024, in parliament, Armenian Finance  Minister Vahe Hovhannisyan made it clear that the introduction of the  IUD would be postponed once again, this time indefinitely, stating  that the draft budget for next year does not include a corresponding  expenditure line. "We will be guided by our capabilities," the RA  chief financial officer stated.

Nevertheless, the draft budget for next year already includes a  budget line for the system's implementation as early as January 1,  2026. Specifically, 127 billion drams will be allocated for subsidies  under the universal insurance system in 2026. The Ministry of  Health's total budget will increase by 44 billion 313 million drams  next year, reaching 210 billion 911 million drams. Starting next  year, children under 18, individuals aged 65 and older, persons with  disabilities aged 18 to 65, and members of socially vulnerable  families will be included in the compulsory health insurance system.  The state will fully cover the health insurance costs for these  categories of citizens. Citizens with a monthly income of over  200,000 drams will pay for their own insurance. Overall, the first  phase of the program is expected to reach 1.7 million beneficiaries  (citizens of the Republic of Armenia who have resided in the Republic  of Armenia for more than 183 days).