Czech Public Health Insurance System Runs Surplus of CZK 5.8 Billion Despite Pandemic
According to the Ministry of Finance, the Czech public health insurance system accumulated reserves of CZK 5.8 billion in 2020, despite high expenditure related to the Covid-19 pandemic. Photo Credit: Vlada.cz.
Czech Rep., Jul 29 (BD) – According to the Ministry of Finance, the Czech public health insurance system ran a substantial surplus in 2020, of CZK 5.8 billion, despite high expenditures related to the Covid-19 pandemic. According to the ministry, this surplus is due to the fact that income from premiums did not decrease compared to 2019, and at the same time payments for state-insured people jumped by CZK 25.4 billion.
According to the released figures, the public health insurance system had revenues of CZK 358 billion in 2020, and expenditures of around CZK 352 billion, leading to a surplus of CZK 5.8 billion. The total costs of healthcare in 2020 increased by CZK 48 billion compared to last year. However, the operation of the public health insurance system was severely impacted by the effects of the COVID-19 pandemic.
“The public health insurance system remains in very good shape,” said Finance Minister Alena Schillerová. “In 2020, the health insurance companies ended in surplus for the fifth time in a row, and their account balances increased by almost ten percent to CZK 64.4 billion last year. Our task is to continue to maintain a high standard and wide availability of patient care. I believe that thanks to a further increase in payments for state-insured people in 2022, by 200 crowns, we will achieve this.”
“The Ministries of Finance and Health have long advocated maintaining the reserves of health insurance companies in times of economic growth for worse times, which is currently proving to be very far-sighted,” added Adam Vojtěch, Czech Minister of Health. “Thanks to these funds and the increase in state payments, the availability and quality of health services were not endangered, even with such an extreme burden on the health system.”
The costs of health services increased in 2020 for all health insurance companies. In response to the impact of the COVID-19 pandemic, the Ministry of Health issued a compensatory order stipulating compensation for declines in the volume of care provided in individual sectors of health services, and higher costs for care provided to patients diagnosed with COVID-19.