Medicover introduces VHI product with co-payment option

2010-03-03

Medicover, a private healthcare provider, has launched a new health insurance product for individuals with a co-payment option, billed as the first product of its type on the Polish healthcare market that should significantly improve the affordability of voluntary health insurance (VHI).
It offers three layers of cover: general, specialist care and hospital care, and allows the consumer to tailor the level of premiums flexibly to their needs. Significantly, there are cheaper options with a co-payment component, with the minimum monthly premium set at as little as PLN 11 (€2.8). According to Dorota M. Fal, health insurance market expert, the new Medicover product is an interesting offer for the Polish healthcare market. There is possibility to buy it online and co-payment option is wide (0-80%) and has a real influence on the price.
Stephen Kennedy, executive director of the Polish unit of Medicover Forsakrings, the company’s health insurance unit, expects the new product will make Medicover’s comprehensive offering of medical care available to a wider patient base.


Co-payment is a powerful factor rationalizing the use of medical services. However, to assess how successful the product with co-payment would be in Poland, we are to consider several facts. Firstly, that general approach to co-payment in Poland is rather negative. During the public discussion that was held in 2005, most of healthcare stakeholders had positive approach, however 80% of the patient/customers sector rejected it. Secondly, in VHI (Voluntary Health Insurance) we are faced with situation that customer has deep feeling of “double payment” for health, so co-payment could be rejected. On the other hand, the proposal of Medicover makes their offer potentially attractive for a customer: the difference between 0% and 20% co-payment options is significant (about 30% of value). Moreover, during the debate of 2005, it was observed that significant number of people changed their approach to co-payment as a result of the explanation of its real influence on the health-care system. In VHI case, co-payment results in immediate effect on the price of the insurance.
To evaluate the chance of success of the VHI products with co-payment we have to analyse the real value of the product - how complete it is (whether the number of excluded procedures is not to high). Secondly, compare VHI offer with the existing insufficiency of the public system in the very region and finally and most importantly - communicate and sell the product and its value to the market which is currently the main barrier for the VHI development in Poland.
Therefore, introduction and popularisation of the product in Poland would be a big investment, demanding marketing campaigns on wide scale and effective distribution directed to individual customers.

Dorota M. Fal, MD MBA, Insurance Market Expert