Maldives Reforms Universal Health Insurance to Restrict Coverage for High Earners

President Dr Mohamed Muizzu has announced a major policy shift in the Maldives’ universal health insurance system, revealing that individuals earning an income exceeding MVR 60,000 per month will no longer receive full coverage under the Aasandha scheme starting next month.

Speaking at a press conference at the President's Office, President Muizzu explained that Aasandha currently provides full coverage across the board without distinguishing between the nation's wealthiest and poorest citizens—a practice he stated is no longer the best approach for the country. 

Under the upcoming framework, high earners making over MVR 60,000 monthly will only be eligible for Aasandha services through a co-pay or pre-pay model, or by paying an annual fee to the government.

Therefore, the wealthy and income tax payers do not necessarily need to receive everything free of charge in the same manner as the general public. Hence, this change will be implemented starting next month, President Muizzu said, adding that detailed guidelines outlining the restricted coverage will be published in the near future.

The administration projects that this targeted restructuring will save MVR 287 million annually from the state budget. 

President Muizzu noted that these conserved funds will be redirected toward other development priorities requested by the public.

The reform follows previous government measures to curtail soaring state expenditures on Aasandha, where actual spending routinely outpaces annual budget allocations by several multiples. According to the latest financial figures, state spending on the health insurance scheme has continuously expanded in recent years:

• 2023 Expenditure: MVR 2.29 billion

• 2024 Expenditure: MVR 2.42 billion

• 2025 Expenditure: MVR 2.58 billion

• 2026 Spending (Year-to-Date through July): Over MVR 1.16 billion (averaging between MVR 160 million and MVR 290 million per month)

The impending policy changes mark the latest step in ongoing fiscal reform efforts aimed at managing public health spending while reallocating resources to broader national development.