Armenia’s finance minister reveals details behind plan for universal health insurance

By Alexander Pracht

The long-awaited reform to introduce universal medical insurance in Armenia, first promised back in 2019, is now finally taking shape. The plan will roll out gradually starting in 2026 and is expected to cover around 85% of the population by the end of 2028. Finance Minister Vahe Hovhannisyan sat down with CivilNet on Friday to explain how the long-awaited system will work and what changes Armenians will face as it comes into force.

The reform is expected to cost the state budget roughly $785 million a year. Hovhannisyan said the government wants to make sure the program is sustainable and won’t be shut down after just a few years, which is why it’s ready to invest heavily in its launch.

“This system should work forever,” he said.

Working citizens will pay monthly insurance fees, starting with a small discount at first, and reaching about $35 per month by the time the program is fully implemented. For some beneficiaries, the state will cover the costs. The insurance will include preventive care, screenings, treatment at medical centers, emergency ambulance services, and coverage for medicines worth up to roughly $125 per day.

Hovhannisyan admitted that reaching an agreement with the Health Ministry on the details of the insurance system was not easy. One of the main concerns for the Finance Ministry, he said, was forecasting the demand for medical care.

“We had to find a compromise to agree on everything,” he said. “We still have our concerns, and so does the Health Ministry.”

He added that the government has decided to stay flexible and make adjustments as the system is rolled out, depending on how demand and costs evolve in the first years of implementation.

Currently, Armenia does not have mandatory health insurance, with only six registered providers offering voluntary coverage. The initial proposal, introduced in 2019, suggested funding the system through a 6% payroll tax, but it faced strong opposition from the Finance Ministry, which at the time prioritized reducing the overall tax burden.

Public spending on healthcare in Armenia remains among the lowest in the region, amounting to just 1.4% of GDP. According to a 2017 study published in Health Economics, Policy and Law, a journal by Cambridge University Press, governments aiming to achieve universal health coverage should allocate at least 5% of GDP to public health spending.