RxPG News Feed for RxPG News

Medical Research Health Special Topics World
  Home
 
   Health
 Aging
 Asian Health
 Events
 Fitness
 Food & Nutrition
 Happiness
 Men's Health
 Mental Health
 Occupational Health
 Parenting
 Public Health
 Sleep Hygiene
 Women's Health
 
   Healthcare
 Africa
 Australia
 Canada Healthcare
 China Healthcare
 India Healthcare
 New Zealand
 South Africa
 UK
 USA
 World Healthcare
 
   Latest Research
 Aging
 Alternative Medicine
 Anaethesia
 Biochemistry
 Biotechnology
 Cancer
 Cardiology
 Clinical Trials
 Cytology
 Dental
 Dermatology
 Embryology
 Endocrinology
 ENT
 Environment
 Epidemiology
 Gastroenterology
 Genetics
 Gynaecology
 Haematology
 Immunology
 Infectious Diseases
 Medicine
 Metabolism
 Microbiology
 Musculoskeletal
 Nephrology
 Neurosciences
 Obstetrics
 Ophthalmology
 Orthopedics
 Paediatrics
 Pathology
 Pharmacology
 Physiology
 Physiotherapy
 Psychiatry
 Radiology
 Rheumatology
 Sports Medicine
 Surgery
 Toxicology
 Urology
 
   Medical News
 Awards & Prizes
 Epidemics
 Launch
 Opinion
 Professionals
 
   Special Topics
 Ethics
 Euthanasia
 Evolution
 Feature
 Odd Medical News
 Climate

Last Updated: Oct 11, 2012 - 10:22:56 PM
World Healthcare Channel

subscribe to World Healthcare newsletter
Healthcare : World Healthcare

   EMAIL   |   PRINT
Healthcare reform in Hungary facing serious challenges

Mar 17, 2008 - 7:54:52 AM
Each fund is allowed to insure between 500,000 and two million people, and according to ministry figures, the most an operator of a small fund could hope to make per year would be around 500,000 forints -. The maximum profit would be roughly four times that.

 
[RxPG] Budapest, March 17 - Hungary's plans to overhaul its ailing healthcare system by allowing private capital into the health insurance market are on the rocks as political pressure mounts following a referendum in which voters have rejected other welfare-state cuts.


Voters turned out in droves Sunday to reject fees for medical treatment and higher education - a result seen as a stinging defeat for the government and its economic reforms.

Analysts say the rejection of the fees - which were part of efforts to reduce the budget deficit and, ultimately, get Hungary ready to adopt the euro - dents the government's ability to continue with reforms.

The next casualty is looking increasingly likely to be a move to introduce private capital into the health insurance system as the political uncertainty frightens off investors.

'As an investment, the risk is quite high. Also, given the elections in 2010 any investor should price in the probability of a significant change,' Gyorgy Barcza, chief economist at Hungary's K&H Bank, told DPA.

Pollsters give the government between 15-20 percent of the vote at the moment. Barring a miracle, main opposition party Fidesz is set to gain power in 2010.

Fidesz has vowed to scrap the private insurance system when it gains power and make the investors pay the costs of winding up the system. However, it does not seem content to wait until then.

The government is already facing a likely referendum challenge to the plan this autumn and Fidesz, which called the previous referendum, this week said it would do everything it could to block the new system.

Neighbouring Slovakia has already seen a rebellion against private insurers in the healthcare system, with Prime Minister Robert Fico last year forcing through legislation preventing them from making a profit.

In Hungary the private capital plan faces more opposition than did the fees for visiting the doctor and hospital stays.

Opponents - who come from across the social and political spectrum and include the chamber of doctors - say private firms will either refuse to insure the elderly and chronically ill or do so at a premium.

Nonetheless the government, which says universal healthcare will still be guaranteed under the new system, is sticking to its guns.

The socialist-model healthcare system has been a black hole for government funding since the change of system in 1990. Drug subsidies have been slashed and beds cut, but the government says more pressure needs to be taken off the central budget.

Health Minister Agnes Horvath, whose position may now be in doubt after the referendum loss, believes a capital injection can be used to upgrade crumbling infrastructure and competition will dramatically improve services at a reduced cost to the government.

However, without investors the system will not get off the ground.

Adding to the mix, the return on investment is not very high for any investor brave enough to take the risk - something Horvath herself has admitted.

According to a senior source, who has represented major international insurance firms in Hungary for over ten years, the investment does not come up to scratch.

'I would not recommend investing in this business,' he told DPA. 'The business cases just work after 10 to 15 years and some scenarios will be negative forever.'

'For 25 to 50 million euros - you can buy smaller-to-medium-sized insurance companies and pension funds all over the region. ... These business cases have a higher probability of positive figures than the health reform in Hungary,' he added.

The new model is based on the Dutch health insurance system, which allows private insurance companies to compete within a strictly regulated framework.

Hungary employed former Dutch health minister Hans Hoogervorst to advise them on how to structure the new system.

Under the new model, the current central fund will be replaced with 22 regional funds into which private companies can invest up to a level of 49 percent. The tender is to be called this summer and funds are expected to begin operating by early 2009.

Profits for each fund will be capped at two percent of capitation income - a per capita figure paid to each fund by a central body responsible for collecting contributions.

Each fund is allowed to insure between 500,000 and two million people, and according to ministry figures, the most an operator of a small fund could hope to make per year would be around 500,000 forints -. The maximum profit would be roughly four times that.

Investors must stump up six to 24 billion forints to buy into the funds, depending on how many people are insured.





Advertise in this space for $10 per month. Contact us today.


Related World Healthcare News
Flu pandemic infected one in five
BRICS to strengthen cooperation in health sector
New tool can detect deadly anthrax attack in 15 minutes
Condoms urged for Tunisian migrants on Italian island
Mexico expects swine flu infections to peak at New Year
Australia confirms its first swine flu case
Swine Influenza A (H1N1) Spreads Outside Mexico
Illegal kidney trade thrives in Pakistan
Healthcare reform in Hungary facing serious challenges
Colombo AIDS event reveals a 'safe pearl in ocean'

Subscribe to World Healthcare Newsletter

Enter your email address:


 Feedback
For any corrections of factual information, to contact the editors or to send any medical news or health news press releases, use feedback form

Top of Page

 
Contact us

RxPG Online

Nerve

 

    Full Text RSS

© All rights reserved by RxPG Medical Solutions Private Limited (India)