The 2025 state budget introduces key reforms to strengthen the Maldives' health insurance system, with a focus on increasing contributions from insured individuals. Set to take effect in April, these changes aim to enhance the country’s healthcare infrastructure and improve accessibility to essential services.
A major aspect of the budget is the overhaul of the subsidy system, which will allocate more funding to Aasandha and medical welfare services, ensuring vital support reaches those most in need and improving overall healthcare delivery.
Individuals earning over USD 3,894 per month, or those liable to pay income tax, will contribute to the health system through a co-payment mechanism for certain services at pharmacies and government hospitals. This progressive contribution system ensures wealthier individuals pay a larger share, creating a more equitable healthcare system. Contributions will be based on income levels, with higher earners paying a greater proportion of the costs.
Additionally, higher-income individuals will contribute to the cost of non-essential medications for outpatient services. To prevent financial strain, the budget sets a cap on total out-of-pocket expenditures.
Contribution rates will be determined by income categories, with exemptions for vulnerable groups, including children under 18, senior citizens over 65, and individuals with chronic illnesses.
Currently, the health sector’s annual expenditure stands at USD 389.4 million, with between USD 129.8 million and USD 194.7 million allocated to Aasandha and medical welfare services. The revised subsidy system targets resources to those most in need, while engaging higher-income earners to support a more sustainable and equitable healthcare system for all.