The fundamental law to Azerbaijan’s health financing system, the Law of the republic of Azerbaijan “On health insurance” establishes the organizational, legal and economic foundations of health insurance of the population and regulates relations between subjects of health insurance.
It was originally signed by the President of Azerbaijan on October 1999. It was modified numerous times since then and is effective as of today. The attached version reflects all of its currently effective edits and updates, with the last amendment signed by the President of Azerbaijan on December 5, 2023.
One of the key changes is that the dispensing of medications to insured individuals will only be possible by prescription, registered in the MHI electronic database. This innovation aims to simplify the control over the medication dispensing process and ensure transparency within the system.
Another significant change allows for the transfer of information constituting medical confidentiality without the consent of the patient or their representative in the event of an insured incident. This measure is essential for the effective implementation of the mandatory health insurance mechanism.
The Institute of Economics of the National Academy of Sciences of Azerbaijan, conducted an analysis highlighting the significance of establishing a robust medical insurance system to enhance the growth of the private healthcare sector in Azerbaijan. The analysis emphasizes that the implementation of a comprehensive medical insurance framework can stimulate private investment in healthcare, leading to improved service quality and accessibility. It argues that medical insurance can mitigate financial barriers for patients, thereby encouraging them to seek necessary medical care without the fear of exorbitant costs.
For mandatory insurance related to loss of professional capacity due to work-related accidents and illnesses, a stark contrast is noted between total insured amounts and actual payouts, highlighting potential gaps in coverage.
The analysis underscores the growing infrastructure and collaboration between private healthcare enterprises and various insurance companies, which is essential for developing a robust medical insurance system in Azerbaijan.
