Social health protection

Building bridges for health: Lao People's Democratic Republic learns from Viet Nam's universal health insurance success

ILO’s study visit strengthens social protection systems in Lao People's Democratic Republic as the country aims to expand and sustain universal health coverage

20 September 2024

BANGKOK (ILO News) – Government officials from the Lao People's Democratic Republic gained insights into Viet Nam’s health insurance system, marking a critical step in their journey toward achieving universal health coverage.

Led by Dr Sanong Thongsana, Vice Minister of Health, the Lao delegation, composed of officials of the National Health Insurance Bureau and Lao Social Security Office, visited Viet Nam in September 2024 to explore its health insurance system.

The study visit, facilitated by the International Labour Organization (ILO), was part of broader efforts to strengthen social protection systems in the Lao People's Democratic Republic, particularly in health insurance, as the country aims to expand and sustain universal health coverage (UHC).

The delegate gained insights into the strategies Viet Nam used to achieve its impressive population coverage, which stands at 93.3 per cent, with a goal of reaching 95 per cent by 2025. Viet Nam’s focus on digital transformation, financial sustainability, and member-centric services was of particular interest to the Lao People's Democratic Republic.

“The study visit came at a critical juncture as the Lao government, with support from the ILO, is revising its health insurance law to address financial sustainability and improve coverage, particularly for vulnerable populations,” said Marielle Phe Goursat, ILO Programme Manager.

“The mission had a clear purpose: to learn from Viet Nam’s successful implementation of its health insurance system, especially its governance, administration, and financing mechanisms,” Phe Goursat added.

One of the key takeaways from the visit was the importance of political will and strong governance in achieving health insurance reforms. Viet Nam’s success in expanding coverage and ensuring the sustainability of its system is underpinned by top-level political commitment, with health insurance being a national priority. The delegation also noted that the integration of social and health insurance under one institution, coupled with a mixed-financing mechanism, could benefit the Lao People's Democratic Republic.

A major highlight of Viet Nam’s model is its use of digital technology to enhance administrative efficiency and service delivery. Viet Nam has implemented digital systems for claims management, member registration, and payment processing, reducing the administrative burden and improving transparency. The Lao delegation recognized the need for a similar digital transformation in its health insurance system, especially to improve claims management and customer service.

The study visits also provided insights into strategies for expanding coverage, particularly for informal workers and rural populations. These included Viet Nam’s use of communication campaigns, local government involvement, and financial incentives for collection agents, which have been effective in reaching underserved populations. The Lao officials planned to explore similar strategies to ensure that vulnerable groups, including those in remote areas, are covered by social health protection schemes.

The delegation also acknowledged the need to address the financial sustainability of the National Health Insurance Fund. Viet Nam’s experience managing deficits in its health insurance fund highlighted the importance of reforms to ensure long-term sustainability.

“Viet Nam's achievements in building a robust and sustainable social health protection system, under the leadership of a unified institution like Vietnam Social Security, are truly impressive. The lessons we have learned during this visit will serve as a foundation for the ongoing reforms in Lao People's Democratic Republic, ensuring that the system not only expands coverage but also improves financial protection for all Lao citizens, especially the most vulnerable,” said Dr Thongsana.

The ILO remains committed to supporting Lao People's Democratic Republic in these efforts, providing technical and financial assistance as the country works to strengthen its social health protection system and move closer to achieving universal health coverage.