The oil-rich country has offered a free healthcare system since 1970.
The source said the ministry sent letters and a 10-page report to hospitals and clinic asking them to collect fees from patients to cover the cost of treatment after the deficit caused by the sharp decline in oil prices.
Many have warned that this could lead to a dangerous situation in public health due to the severe poverty in the country.
Iraqis expressed their angry with the decision amidst the difficult economic situation which they are facing.
Patient Raghib Hassan said: “During my visit to a government hospital in Baghdad, I was surprised that I was asked to pay for the medical examination, x-ray, medical tests and treatment.”
“This means that one visit to a government hospital needs between 30,000 to 50,000 [Iraqi] dinars ($27-$45).”