The Czech healthcare system is set to receive a significant financial boost starting next year. The government of Andrej Babiš approved, on Monday, June 8th, a draft amendment to the law on contributions for public health insurance, according to which the state will increase payments for so-called "state-insured" individuals starting in 2027. As a result, health insurance companies are expected to receive 24 billion crowns more than this year.
The cabinet discussed the proposal at a meeting, which was attended in part by President Petr Pavel. According to the government, the increase in payments is necessary due to the deteriorating financial situation of the public health insurance system. The system is expected to operate with a deficit of approximately 15 billion crowns this year. If liabilities already recorded by health insurance companies are included, the actual deficit could reach up to 19 billion crowns. Insurance companies will currently cover this from previously created reserves.
However, according to the government, this situation is not sustainable in the long term. Therefore, the amendment provides for a one-time increase in the rate of the taxable base, which is used to calculate the contributions paid by the state. "State-insured" individuals include, for example, children, pensioners, students, the unemployed, or people on parental leave. Due to the urgency of the matter, the government wants to ask the Chamber of Deputies to approve the draft in the first reading.
Babiš stated that healthcare occupied the largest part of the government's meeting. He criticized the previous government, which, according to him, "promised money for healthcare but did not provide it." He added that this had led to the reserves of health insurance companies being depleted.
At the same time, the government is also demanding cost savings. According to Babiš, the ministers, led by the Minister of Finance, were asking the Minister of Health for specific cost-cutting measures. The Prime Minister stated that reserves exist both in healthcare and in the health insurance companies themselves, where he believes that at least one percent of operating costs should be saved.
Babiš also emphasized that healthcare is one of the government's main priorities. He mentioned planned projects, such as electronic prescriptions or the e-card, which are intended to bring greater efficiency and savings.
The cabinet also addressed other issues. It supported a parliamentary amendment to the law on packaging, which is intended to clarify the rules for the return of waste from consumers, and discussed the financing of measures related to the EU's nitrates directive. The costs of complying with its requirements are estimated at 1.137 billion crowns.
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