Lesotho allocated 12% of its GDP and 11% of its total domestic budget to health in 2020. Current health expenditure (CHE) comprises these contributions: 52% from the government, 33% from donors and 15% from out-of-pocket expenditures. Lesotho does not have national insurance, but the government allocates resources to primary and secondary health care, to make care affordable.
In 2008, Lesotho implemented a user fee policy, which stated primary health care would be free and secondary and tertiary health care would receive significant subsidies. Strengthening the system and eliminating user fees improved access to maternity care and reduced neonatal mortality rates in Lesotho.