Private Healthcare UK
August 6, 2012
Slovakiaās prime minister Robert Fico plans to reduce national healthcare to a single state-owned insurer by 2014, and this would mean the nationalisation of two private health insurers or buying them.
The government wants to introduce a system of one health insurer instead of several health insurers. Fico says, “Privately-owned health insurers should leave the Slovak market. Slovakiaās health care system has been suffering from a lack of funding, while private insurers turn a profit based on public money.ā
The current health care system in Slovakia is a form of private-public partnership, where all Slovaks pay a healthcare tax of 14%, and can choose cover provided by one of the three providers, who provide cost-free treatment.
The two private health insurers, Union, owned by Dutch insurer Achmea, and Dovera, controlled by Slovak-Czech private equity group Penta Investments, provide cover for 1.8 million of a total 5.4 million Slovakians. The state owned General Health Insurance Company, better known as VsZP, provides cover for the remaining 3.6 million.
As a local company, Penta has to be very careful what they say and so has said it will listen to government plans.
But Achmea has said it will use all official and legal channels to protect the business interests of Union, and is not interested in selling Union or its portfolio to the state. If it invokes EU law on protectionism it could take many years for any legal battle to be concluded, and as a large EU health insurer Achmea has the financial and political muscle to thwart tiny Slovakia.
Comment:
By Don McCanne, MD
Slovakia has a health insurance program covering everyone, financed by a payroll tax. But Slovakians can choose one of two private insurers in place of their public plan. Slovakia’s prime minister now wants to end the diversion of public money to profits of the private insurers, so all funds are spent on health care.
Many in the United States who support private insurance have praised the Dutch system of private health plans, but you really have to question the moral authority of these plans when a large Dutch private insurer intends use EU law to force Slovakia to continue to use its unwanted insurance product.
Yet our political leaders in the United States want to keep the private insurers in charge. It seems that Slovakia has some valuable lessons for us.