CoMs Approves Regulation for Community-based Health Insurance Scheme

ADDIS ABABA – The council of ministers approved a regulation to give impetus to a national efforts to expand the community based health insurance (CBHI).

The Council of ministers, apart from passing two bills to the parliament, ratified the draft CBHI regulation during its regular session on Monday.

The community-based health insurance scheme was launched in 13 districts of four regions as a pilot project a decade ago.

The scheme which aims to ease off the pressure of health-related expenses on low-income families, pools members’ premium payments into a collective fund to cover basic healthcare costs at medical centers when a member is sick.

The scheme achieved its objective and registered significant results, as per a top health official assessment revealed upon its 10-year launch anniversary in January.

“A study demonstrated its impact in increasing health service utilization, reducing catastrophic out-of-pocket expenditure, and bringing more resources to the health system,” Health Minister Dr. Lia Tadesse said.

Currently, the community Based Health Insurance covers 894 districts reaching more than 45 million people across Ethiopia.

A national council has now taken the responsibility to lead expansion of the insurance scheme further across the country.

Ethiopian lawmakers enacted the CBHI Proclamation last year to provide legal framework for the health insurance scheme.

The newly approved regulation will help implement the proclamation, the PM Office said in a statement Monday.

It sets detail provisions especially in financial deficits coverage, risk mitigation strategies and standards in the establishment of pools.

Hence, the PM office said the regulation was prepared to put in place effective and uniform health insurance system at the national level.

The regulation will become effective as of the day of its publication on the Federal Negarit Gazette, the PM Office added.