President Mohamed Muizzu announced today that full coverage under the national health insurance scheme, Aasandha, will be discontinued for individuals earning an income of MVR 60,000 or more, effective next month.
Speaking at a press conference held at the President's Office, Muizzu stated that removing full coverage for high-income earners would save approximately MVR 287 million annually. He noted that these savings would be redirected toward other public welfare initiatives.
"In the coming days, those earning a salary above MVR 60,000 will no longer receive full Aasandha coverage as they currently do. Instead, they will access Aasandha through a co-pay or pre-pay system. This will allow us to save MVR 287 million over a year to spend on other public needs," Muizzu said.
The President further emphasized that the wealthy and those paying income tax should not be entitled to the same level of state-funded insurance. He added that implementing these cuts starting next month would yield some savings within the current fiscal year.
"The wealthy and income tax payers—it is not necessary for the affluent to receive every benefit provided to the general public. Therefore, God willing, this change will be implemented starting next month. We will be able to save some amount even within this year," Muizzu said.
On February 18, 2025, following cabinet consultations, Muizzu decided on 11 systemic changes to reduce Aasandha’s expenditure on pharmaceuticals. At the time, the President’s Office stated that these reforms were intended to ensure that the public faces no difficulties or financial burdens in obtaining medication.
Highlighting that providing identical coverage to both the wealthy and the general public is inequitable, Muizzu noted that international organizations and technical experts also agree that the current model is unsustainable.
A performance audit of Aasandha released by the Auditor General’s Office this year projected that the scheme's expenditure could reach MVR 4 billion by next year.
The report noted that over the past six years, actual spending on the Aasandha scheme has consistently exceeded budgeted amounts annually. It warned that without urgent intervention, rising costs would jeopardize the long-term sustainability of the national health insurance system.
