Major political parties in Palpa have expressed serious concern over the government’s decision to reduce treatment services available at private hospitals under the Health Insurance Program and have demanded that the decision be withdrawn immediately.
Palpa became the sixth district in the country to implement the Health Insurance Program, which came into operation on January 24, 2017. However, stakeholders state that the program has not been effectively implemented since its inception. Although health insurance services have been available at Palpa’s two major private hospitals, United Mission Hospital and Lumbini Medical College, insured citizens have long complained of being unable to receive continuous and quality services due to repeated interruptions and resumptions of service.
Palpa Hospital and Rampur Hospital serve as referral hospitals under the Health Insurance Program.
Citing a growing financial crisis, the Health Insurance Board has decided to suspend all health insurance services provided through private health institutions, except emergency services, effective from May 29, 2026, until further notice. The Board informed private hospitals of the decision through a letter issued on Tuesday.
According to a notice issued by Acting Executive Director Shakuntala Prajapati, the Board meeting decided to suspend all insurance services, except emergency care, provided by private health institutions affiliated with the Government of Nepal’s Health Insurance Program, taking into account the challenges seen in financial management.
Expressing dissatisfaction with the decision, six major political parties in Palpa jointly submitted a memorandum to the Prime Minister.
In the memorandum sent to the Prime Minister through Assistant Chief District Officer Rishi Ram Subedi on May 28, 2026, the parties stated that the decision to discontinue health insurance services at private hospitals would directly affect ordinary citizens, particularly those who are poor and living in rural and remote areas. The memorandum further stated that any step that weakens the Health Insurance Program is unacceptable and urged the government to immediately reverse the decision.
The joint memorandum was signed by Himaldatta Shrestha, President of the Palpa district committee of Nepali Congress; Om Bahadur Gharti Magar, President of the Palpa district committee of Communist Party of Nepal (Unified Marxist–Leninist); Ashok Kumar Shahi, Coordinator of Communist Party of Nepal; Dhruva Khati, Vice President of Rastriya Prajatantra Party; Bishal Darlami, President of Rastriya Janamorcha; and Min Bahadur Ale, Secretary of Communist Party of Nepal (Maoist Centre), among other leaders.
The political parties stated that the Health Insurance Program is an important social security initiative that helps ensure citizens’ access to basic healthcare services. They argued that instead of reducing services, efforts should be made to strengthen the program’s effectiveness, warning that the decision would make access to healthcare even more difficult.