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President Dr Mohamed Muizzu has announced that people earning more than MVR 60,000 a month will no longer receive full Aasandha coverage from October, with the government planning to introduce a co-pay or pre-pay system for this group.
Nazeem Noushad
Speaking at a press conference at the President’s Office, President Muizzu said Aasandha is currently provided on the same basis regardless of a person’s income.
He said he does not believe providing the same level of free coverage to people earning significantly different incomes is the most appropriate approach.
Under the planned changes, individuals earning more than MVR 60,000 per month will have to contribute towards their Aasandha coverage through a co-pay or pre-pay arrangement. The President said they would be required to pay an annual fee to the government.
According to Muizzu, the change could save approximately MVR 287 million annually from the State budget.
He said the savings could instead be directed towards other pressing needs.
“The rich, those who pay income tax, they do not necessarily need to receive all these services for free like the general public does.”
The President said the new system will take effect from October, while detailed policies and arrangements governing the changes will be announced in the coming days.
Aasandha expenditure has repeatedly exceeded the amounts allocated in the State budget in recent years, prompting the government to introduce measures aimed at reducing the scheme’s cost to the State.
The latest announcement represents a significant change to how Aasandha benefits are provided based on income.
