Minister: Czech insurance companies' surplus reaches 5 billion

Prague, Nov 20 (CTK) - Czech health insurance companies have a total of 28 billion crowns in their accounts while their commitments are worth 23 billion which means that they have achieved a surplus of five billion crowns, Health Minister Tomas Julinek (senior ruling Civic Democrats, ODS) told CTK Thursday.

He said the five-billion-crown reserve that was created also thanks to the collection of regulatory health fees introduced in January would allow doctors to receive next year more money from health insurance companies for their services.

Shadow health minister for the opposition Social Democrats (CSSD) David Rath has repeatedly criticised amassing of the money in the accounts of health insurance companies.

Rath said if the money were spent on the care and payment for it, the health care personnel would not have to collect the fees in cash.

The Czech Doctors' Association (CLK) has voiced a similar view.

"If we did not prevent waste and if we did not create reserve funds in the health insurance sector, we could not afford to increase the payment next year and the general development of the health care sector," Julinek said.

Last year, the health insurance companies also ended with a surplus and for the first time after several years their situation was stable, Julinek said.

This year, the surplus was achieved because of the growing economy, high employment and wage increases due to which health insurance payments of many people have increased, Julinek said.

He said, however, that the ministry expected the situation to worsen next year due to the world financial crisis that would result in an increase in joblessness.

"The trend will change next year. The health insurance companies will pay more than they will collect," Deputy Health Minister Pavel Hrobon said.

However, the slowing down of the economy should not necessarily affect the health insurance companies due to the reserve in their accounts.

"Czech health care is one of the most stable in Europe," Julinek said.

Regardless of the expected impact of the crisis, doctors are expected to receive more money from insurance companies for their services next year compared to this year.

For instance, payments to hospitals could grow by about 7 percent, according to the services provided.

Specialists from out patient facilities could also receive 7 percent more money and general practitioners 10 percent more.

The wages of the doctors who will increase their work hours or will work until 18:00 one day a week could increase by an additional 3 to 4 percent, Julinek said.

He said the regulatory fees had played an important role in the health insurance companies' incomes. For instance, they make up up to 2 percent of hospitals' incomes.

The General Health Insurance Company (VZP), the largest health insurer in the Czech Republic, had a considerable deficit exceeding ten billion crowns a mere couple of years ago.

Julinek's predecessor in the post Rath even imposed forced administration on the VZP. The state considerably helped the company by increasing its payments for the patients covered by state insurance - children, pensioners, students and the unemployed.

The CSSD has proposed that old-age pensioners, children under 18 and people with income below double the subsistence level be exempted from the fees.

However, the plans of health insurance companies reckon with the revenues from the fees, Julinek said.

If the Social Democrats' plan were approved, the health care sector would lack several billion crowns, he added.

The center-right coalition government has agreed to limit the fees, now applicable to all. From January, it wants to free children under six from the payment, while those under 15 are to have the maximum yearly sum for fees and cash payments for medicine lowered from the current 5000 to 3000 crowns.

($1=20.359 Czech crowns)