Armenian Government Designates No Funding For Health Insurance Plan Rollout In 2025

A hospital in Yerevan (file photo)

The Armenian government has effectively further delayed the introduction of a mandatory national health insurance system by designating no funding for it in next year’s state budget, it emerged on Monday.

During a press briefing in parliament, where budget discussions began today, Finance Minister Vahe Hovannisian explained the decision not to earmark any money for the health insurance plan in 2025 by the need to make further preparations for the reform, which has been repeatedly delayed in recent years.

Health Minister Anahit Avanesian announced in January that the gradual introduction of the national health insurance system would start in July, initially covering medical costs for underage and disabled citizens as well as several other vulnerable groups of people who are already eligible for many free medical services. This coverage would be extended to pensioners and public sector employees in 2025 and the country’s entire population in 2027, she said.

Avanesian admitted in June that the long-awaited healthcare reform had been delayed again, adding that the Armenian parliament would debate a relevant bill drafted by the Health Ministry in the fall.

Avanesian’s deputy, Artak Jumayan, told RFE/RL’s Armenian Service in September that the ministry had no specific time frames for the introduction of the health insurance system.

Finance Minister Hovannisian said today that the government has found that “certain preparatory work needs to be done in order to introduce the system smoothly.”

“We believe that better preparation is needed in terms of reforming this sector, including aspects like digital systems, risk management and hospital capacity. Once the system is implemented, the demand for health services will increase dramatically,” he explained.

A reform “concept” approved by Prime Minister Nikol Pashinian’s government last year calls for a special tax that will cover the cost of surgeries and other essential medical services. According to the Health Ministry’s preliminary estimates, every working citizen in Armenia would have to pay 164,000 drams ($420) annually.

Opposition members of parliament have criticized the Armenian government for failing to honor its pledge to provide health insurance for all citizens – something that former Armenian governments had also promised but eventually failed to deliver due to financial difficulties.

Hovannisian stressed that the absence of funding in the 2025 state budget does not mean giving up on the reform. “We say we are going to have [the health insurance system], but I can’t say when,” he said.