Armenia to extend health insurance to 350 thousand more workers earning up to AMD 200 thousand from 2027
About 350 thousand workers in Armenia earning up to AMD 200 thousand (about $555) a month will join the universal health insurance system from January 1, 2027, along with drivers working for ride-hailing platforms.
This is provided for in draft amendments to the laws on Universal Health Insurance and on Medicines, which the government approved at its October 29 meeting. Workers will also be able to insure family members voluntarily.
What happened
The monthly premium is AMD 10,800 (AMD 129.6 thousand a year). Health Minister Anahit Avanesyan set out how it will be split for workers earning up to AMD 200 thousand:
| Who pays | AMD/month | AMD thousand/year |
|---|---|---|
| State (subsidy) | 4,400 | 52.8 |
| Employer | 4,400 | 52.8 |
| Employee | 2,000 | 24.0 |
| Total | 10,800 | 129.6 |
For people whose salary from January 1, 2027 is between AMD 200 thousand and 500 thousand, the minister said the state will keep subsidising AMD 6,000, as in 2026, and the employee will pay the remaining AMD 4,800.
According to the minister, until 2026 all workers paid a stamp duty of more than AMD 1,000. From January 1, 2026 it was cut to AMD 1,000 for everyone earning up to AMD 1 million. The government had earmarked the resulting savings for this group.
Other changes from January 1, 2027:
- Family members. At the request of many citizens, employees will be able to insure related persons voluntarily, paying the premium themselves. Those earning AMD 200–500 thousand can add one family member, and those earning more than AMD 500 thousand can add two.
- Taxi drivers. Ride-hailing drivers will be included if they have been registered on a platform for at least two years and their average monthly turnover in 2026 exceeded the minimum wage (currently AMD 75 thousand).
- Law on Medicines. The amendment requires prices of medicines in the insurance package to be reviewed at least twice a year, whereas the current law allows this no more than twice a year.
These are still draft laws and can take effect only after the National Assembly adopts them.
Who benefits
- Low-wage workers. Around 350 thousand people will get an insurance package worth AMD 129.6 thousand a year while paying AMD 24 thousand themselves, less than a fifth of its value.
- Their families. Higher earners will be able to add one or two relatives to the system.
- Ride-hailing drivers. They get access to the system for the first time. According to the minister, the aim is to ensure stability and give drivers the chance to use the system.
- Clinics and pharmacies. The number of insured patients paid for by the fund will grow.
- The state. Back in August, Prime Minister Nikol Pashinyan noted that there are shadow schemes in the low-wage segment and that the state must solve the social problem without encouraging the shadow economy.
Who pays. The new costs fall on employers and the budget. BusinessDaily estimates them from government figures, based on 350 thousand people and 12 months:
- the state: about AMD 18.5 billion a year;
- employers: another AMD 18.5 billion or so a year;
- workers themselves: about AMD 8.4 billion a year.
In total, about AMD 45.4 billion a year will flow into the system.
What it means
Coverage is widening. The system has been running since January 1, 2026. According to the Unified Services Platform, the state insures, free of charge, children under 18, people aged 65 and over, people with disabilities, members of socially vulnerable families (the “Paros” system), Chernobyl clean-up workers, World War II veterans and victims of repression, and one parent caring for a person with a disability. Employees earning more than AMD 200 thousand pay for themselves, as do sole proprietors, notaries and people working under civil contracts whose annual income exceeds AMD 2.4 million. Now low-paid workers are being added too. In August 2026, Pashinyan set the goal of covering all segments of the population by January 1, 2029.
The threshold is below the average wage. According to the Statistical Committee of Armenia, the average nominal monthly wage in January-August 2026 was AMD 312.5 thousand, up 5.6% year on year. The public-sector average stood at AMD 248.6 thousand, against AMD 336.5 thousand in the non-public sector. Pashinyan noted that the low-pay problem also exists in public administration and must be solved there as well.
The AMD 200 thousand threshold matters for employers. By BusinessDaily’s calculation, AMD 4,400 a month equals 5.9% of the minimum wage (AMD 75 thousand) and 2.2% of a AMD 200 thousand salary. Under the scheme the minister described, employers pay nothing for staff earning above AMD 200 thousand, while the employee’s share rises from AMD 2,000 to AMD 4,800. This gives businesses a reason to raise official salaries above the threshold, which Pashinyan urged in August. The reverse risk is that some employers may try to push low wages into the shadow economy.
The system’s results. Pashinyan cited figures for the system’s first nine months:
- 26.9 thousand pensioners aged 65+ received services worth AMD 1 million or more;
- 62.1 thousand pensioners received services worth AMD 500 thousand or more;
- 2,021 people aged 65+ received services worth AMD 4 million or more;
- across all groups, 97.6 thousand people received services worth AMD 500 thousand or more.
In the first nine months of 2026, the budget allocated more than AMD 117 billion to insuring pensioners alone. “This shows how important this reform is for people’s lives,” the Prime Minister stressed, thanking citizens who work and pay their taxes.
What to do
- If you earn up to AMD 200 thousand: from January 2027, AMD 2,000 a month will likely be deducted from your salary. Check that your employer pays its share, and look up what the package covers in the Armed app or on the Health Ministry website.
- If you earn more than AMD 200 thousand: decide whether to insure one or two family members. You will pay their premium yourself, and the amount has not been announced yet.
- If you are a taxi driver: check whether you have two years of registration on a platform and whether your 2026 turnover exceeded AMD 75 thousand a month.
- If you are an employer: budget AMD 52.8 thousand a year in 2027 for each employee earning up to AMD 200 thousand. For 50 such employees, that is AMD 2.64 million. Consider whether raising salaries above the threshold would be cheaper.
- If you run a clinic or pharmacy: prepare for more insured patients from 2027.
- Everyone: follow the parliamentary debate on the bills, as the terms may change.
Calculations by BusinessDaily with the help of Claude, based on Armenian government data.
Photo: Ministry of Health of Armenia
