Slovak health insurers to be allowed to make profit?

2010-08-11

Slovak health insurers may be able to make a profit once again, under strictly defined rules and profit limits, according to a programme declaration published by the new Slovak government. For example, if the insurer does not the meet time limits established for specific surgical procedures and patients have to wait longer, the cost of such surgery will be subtracted from its profit.
The ability to make a profit and pay dividends to shareholders was removed in 2008 by the previous government led by Robert Fico, as it was deemed that insurers were profiting at the expense of patients. Instead, they had to channel any profits back into the healthcare industry.
Meanwhile, the Slovak Republic faces international arbitration from private healthcare fund shareholders: for example, the Dutch company Hicee, a shareholder of the private insurance firm Dovera, is claiming damages of €0.5bn for a compromised investment.
The European Commission has also voiced concern about legislation which prohibits health insurers from making a profit, and in November 2009 it sent Slovakia a formal letter of complaint.