Kathmandu, May 29 -- The government has announced plans to restructure Nepal's national health insurance programme, acknowledging its current shortcomings and pledging legal and institutional reforms to ensure its effectiveness and sustainability.

Presenting the budget for the fiscal year 2025-26 to the joint session of Parliament on Wednesday, Finance Minister Bishnu Paudel said the Health Insurance Act will be enforced more rigorously, with specific emphasis on institutional discipline, leakage control, and reform in service delivery.

To improve the quality and reach of the scheme, the government plans to gradually increase the benefit cap for insured individuals. In addition, multiple public health initiatives will be integrated into...