Last year, public health insurance had a surplus of CZK 5.1 billion, this year there will be a deficit

Last year, public health insurance had a surplus of CZK 5.1 billion, this year there will be a deficit

Public health insurance had a surplus of CZK 5.1 billion last year, this year there will be a deficit

Ministry of Finance of the Czech Republic in Letenská Street in Prague.

Prague – Last year, according to the Ministry of Finance (MF), public health insurance had a surplus of 5.1 billion crowns, the balance on the accounts of insurance companies was 57 billion crowns at the end of the year. For this year, insurance companies are planning expenditures of over CZK 471 billion and a deficit of CZK 7.5 billion. This follows from the assessment of the development of the public health insurance system, which is being translated by the ministries of finance and health at the government's meeting on Wednesday. Insurance companies expected a deficit in the system in 2021 and 2022 as well, but in real terms they managed better.

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According to the Ministry of Finance, the public health insurance system reported revenues of CZK 431.9 billion and expenditures of CZK 434.2 billion last year, resulting in a deficit of approximately CZK 2.3 billion. “Thanks to the accumulated reserves, the availability and quality of health services will not be threatened,” the Ministry of Finance said.

According to the Ministry of Finance, the balances in the bank accounts of insurance companies increased by 5.1 billion crowns to 57 billion in 2022. Overall, the system managed a surplus of 5.1 billion crowns. The arrival of refugees from Ukraine also helped insurance companies. Since all Ukrainians who registered in the Czech Republic and joined the public health insurance system were entitled to health insurance, the state paid insurance premiums for them as for state insured persons.

In total, according to an earlier statement by the Ministry of Finance, it sent about 4.5 billion crowns to insurance companies last year. Of the 460,000 registered since the beginning of the war, about 172,000 of them received health care by the end of the year. The insurance companies were thus left with approximately 2.6 billion crowns.

Money for the public health insurance system comes from levies of employees, employers and self-employed persons and from the state budget through payments for state insured persons. These are children, seniors, unemployed or refugees from Ukraine, adults only for the first 150 days of their stay. 1,900 crowns are allocated monthly from the budget for state insured persons, of whom there are approximately 5.92 million. From 2024, the amount paid by the state will be valued automatically depending on the development of the economy.

Insurance companies model income and expenses for this year in their health insurance plans. According to the Ministry of Finance, they expect revenues of 464.1 billion crowns and expenses of 471.3 billion crowns. “The system should manage a deficit that will increase to CZK 7.5 billion year-on-year,” the Ministry of Finance said. The Association of Health Insurance Companies, which brings together six smaller non-VZP, estimated in January that the deficit could be up to CZK 12 billion and there is a risk of running out of reserves.