Health Insurance Program Halted at Private Hospitals

May 27, 2026 01:58 PM Merolagani



Nepal’s government-run health insurance program is facing a severe financial crisis. The Health Insurance Board (HIB) has announced that it will stop providing regular insurance services at all private hospitals across the country starting June 30, 2026.

This drastic decision comes after the government failed to pay billions of rupees in outstanding dues to private medical institutions for years.

After the decision, health insurance holders can no longer use insurance for Out-Patient Department (OPD) visits, routine health check-ups, planned surgeries, regular treatments, or medicines. However, Only Emergencies will be allowed in private hospitals. A total of 36 private hospitals and medical colleges across Nepal will stop accepting government insurance for regular care.

The health insurance program was originally launched with the goal of providing "Access to Health Services for All." However, critics say the system is now on the verge of collapse due to massive financial shortage to sustain the program, delayed payment  to private hospitals for a very long time by the government that put intense financial pressure on the private healthcare sector and poor management.




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