Washington, June 28, 2024 — The World Bank’s Board of Executive Directors has approved a loan amounting to $110 million (EUR 102 million) to support the Enabling Universal Health Coverage Program for Armenia. This initiative aims to enhance the quality of primary health care, ensure accessible services nationwide, and increase the efficiency of government healthcare spending. It aligns with the Government of Armenia's Five Year Action Plan (2021-2026) and is part of the national Healthcare System Development Strategy.
While Armenia has seen improvements in maternal and child health outcomes over recent decades, non-communicable diseases remain the leading cause of death and illness. Low government spending on healthcare and systemic inefficiencies contribute to high costs, resulting in significant out-of-pocket payments. In 2021, these payments accounted for 81.4 percent of current health expenditures in Armenia, one of the highest rates globally.
“Armenia’s high private health care costs are an outlier in the world with adverse effects on the quality of services provided to citizens. Ongoing reforms intend to create better financial and regulatory incentives for the provision of quality healthcare,” said Carolin Geginat, World Bank Country Manager for Armenia. “The broader reform has the potential for fundamentally altering the disease patterns within the Armenian population and making health care more affordable for the population.”
The operation will utilize a Program-for-Results (PforR) financing instrument that links fund disbursement directly to specific program results. It supports an ambitious health reform agenda that includes introducing mandatory health insurance. Additionally, measures will be taken to improve service quality and increase government spending efficiency through mechanisms such as external reference pricing for essential medicines.
The project aims to benefit all residents of Armenia by providing better quality and more affordable health services aimed at preventing non-communicable diseases. Key outcomes include financing primary health care facilities based on performance metrics related to quality and coverage, improved training for nurses and family physicians, reduced prices for prescribed drugs, and decreased out-of-pocket spending as a share of current health expenditures.