Armenia’s Health Insurance Reform Expands: 1.7 Million Insured and Nearly 8.4 Million Medical Services Provided

The first phase of Armenia’s healthcare reform can generally be considered successful and free of major systemic disruptions, Armenian Minister of Health Anahit Avanesyan said while presenting an interim report on the implementation of the country’s universal health insurance system, which was launched on January 1 this year.

First Phase of the Reform and System Launch

According to the minister, one of the defining features of health insurance is that, unlike social insurance, it begins functioning immediately after its launch. Citizens start using medical services almost at once, requiring the system to operate at full capacity from day one.

Avanesyan said the rollout had been "fairly smooth," with no critical failures or excessive strain that could have affected people's access to healthcare.

She also highlighted the ongoing integration of healthcare providers into the system. Medical centers continue to join the program steadily, including not only public healthcare institutions but also private clinics, laboratories, and pharmacy chains. According to the minister, this process is essential to ensuring broad nationwide access to healthcare services.

Expanding Coverage and Growing Number of Insured

Avanesyan recalled that the system was initially expected to cover around 1.5 million people. During its first six months of operation, the number of beneficiaries increased to approximately 1.7 million.

The minister attributed this growth to several factors.

First, the number of residents—individuals who spend more than 183 days a year in Armenia—has increased. These residents are automatically enrolled in the health insurance system.

Second, coverage was expanded to include individuals earning more than 200,000 drams per month, who were also brought under the universal health insurance program.

The minister also addressed the inclusion of individual entrepreneurs. Their participation had originally been scheduled to begin in April but was postponed until June 20. Nevertheless, many entrepreneurs voluntarily joined the system before the official deadline, demonstrating the business community's gradual adaptation to the new regulations.

Avanesyan also outlined the next stages of the reform. Beginning January 1, 2027, the system is expected to expand to include workers employed under civil-law contracts, ride-hailing service drivers, and all employees regardless of salary level. By 2028, the program is expected to cover virtually the entire population of Armenia, including agricultural workers, students, and other groups. During the same period, the existing state-funded healthcare procurement program is expected to be phased out as a separate financing mechanism.

Healthcare Utilization and System Workload

According to the minister, 842,750 of the 1.7 million insured individuals have already received medical services. The total number of healthcare services provided has reached 8,399,491.

Preliminary figures indicate that total expenditures have amounted to approximately 97.4 billion drams.

Avanesyan noted that such high utilization was expected following the launch of the new system, although external factors also influenced demand.

In particular, she said widespread rumors suggesting that the universal health insurance program might be temporary and could be abolished following political developments or elections led to a sharp surge in demand during May, creating a temporary spike in healthcare utilization.

Situation Stabilizes and System Sustainability Assessment

In recent weeks, the situation has stabilized, the minister said. According to the Ministry of Health, this indicates that the increase in demand observed in May was largely driven by public concerns and misinformation rather than by a lasting upward trend.

She added that the next six months will be crucial for assessing the long-term sustainability of the system and evaluating the accuracy of the actuarial calculations on which it is based.

Financial Sustainability and System Management

The minister also addressed the financial aspects of the reform.

According to Avanesyan, the system's expenditures remain within the projected budget, while the financing mechanism continues to function as planned.

She stressed that the government has several tools to manage system capacity, including monitoring healthcare utilization, regulating waiting lists, and controlling the volume of services provided. These mechanisms help maintain a balance between demand and available resources.

If necessary, she said, additional measures could be implemented jointly by the Health Insurance Fund, the Ministry of Health, and the government to preserve the financial sustainability of the system. However, at this stage, no additional regulatory interventions have been required.