BRATISLAVA, April 28, (WEBNOVINY) — Health insurance companies will be entitled to use generated profit independently under two conditions. Health insurance companies will be obliged to create a reserve fund of up to 20 percent of the paid-up share capital, as well as create technical reserves for paying for planned procedures of policy holders on waiting lists. This stems from a draft amendment to the law on health insurance companies, which the Cabinet approved on Thursday.
In the Robert Fico era, parliament passed a law limiting the use of profit generated by private health insurance companies, which the Constitutional Court recently deemed at odds with the constitution and other international documents and agreements. Parliament has six months from publication of the Court’s decision to harmonize the contested provisions with these documents. The Slovak Republic is currently facing three international arbitration proceedings over the law it passed in 2009 banning private health insurers from keeping their profits initiated by shareholders of the insurers Apollo, Dovera and Union. Also the European Commission is dealing with the contested stipulations.
Prime Minister Iveta Radicova stated that the defined conditions are clear as well as strict. Health Minister Ivan Uhliarik added that the draft legislation ensures that health insurers will not be able to create profit on the expense of their policyholders. He believes insurers will be able to fulfill the requirements and generate a profit anyway.
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