Government greenlights €168 million from reserve to keep healthcare afloat
During state budget negotiations, the government approved the minister of health's proposals to reduce the Health Insurance Fund's deficit. The government agreed to amend the Health Insurance Fund Act and authorized the use of €167.6 million from the fund's reserves next year.
The projected budget for the Health Insurance Fund next year is over €2.5 billion, with the majority of the expenses going towards healthcare services, medications and temporary incapacity benefits, according to the Ministry of Social Affairs.
"Despite the impact of streamlining the healthcare system and redistributing the burden of patient co-payments, the Health Insurance Fund's revenue will not be sufficient to maintain the current level of healthcare accessibility – revenues do not cover expenses. For every €10 million cut in specialized medical care, around 10,000 patients would have their treatment delayed. However, by deciding to use the reserves, we can prevent this," said Minister of Health Riina Sikkut (SDE).
According to Sikkut, tapping into the reserves will help ensure the availability of medical care next year and prevent significant increases in waiting times for treatment.
According to the Ministry of Finance's summer forecast, the Health Insurance Fund's projected deficit next year is €209.8 million. As part of the redistribution of cost-sharing, visit, bed and prescription fees will rise next year. However, in inpatient nursing care, patient co-payments are expected to decrease by a third, resulting in an average cost reduction of around €260 for patients.
Various changes will help reduce the Health Insurance Fund's deficit to €167.6 million in 2025, a reduction of €42.2 million.
Sikkut further emphasized that while the Health Insurance Fund can currently cover the deficit from its reserves to maintain service levels, it is clear that obtaining more sustainable additional funding will be unavoidable in the coming years.
"Due to the aging population, the demand for healthcare services is increasing, while costs are rising as a result of the growing prevalence of chronic diseases. At the same time, new forms of work, changes in the labor market and a shrinking workforce have led to a situation where revenue from social tax is no longer sufficient to fund medical care. Additionally, there is a growing need across Estonia for much more mental health support, as well as palliative and pain care," Sikkut explained.
--
Follow ERR News on Facebook and Twitter and never miss an update!
Editor: Mirjam Mäekivi, Marcus Turovski
