articles | 08 August 2014

Hospital fees boost state coffers

The reform of public health care has brought a much needed inflow of euros into parched state coffers, it was reported recently.

The Cyprus News Agency (CNA) yesterday cited sources saying that since the new charges were introduced into public health care on August 1, 2013, millions of euros have been collected by the state.

The new system completed a year in operation on August 1, 2014, the results of which were sent to the Finance Ministry for study.

Health care changes included new income criteria for beneficiaries and the introduction of hospital fees when visiting general practitioners, specialist doctors or the Accident &Emergency department, as well as for lab tests and prescriptions. The reforms were agreed with Cyprus’ troika of lenders and were mostly designed to prevent abuse of the overburdened state health care system.

According to CNA, the introduction of a 1.5% gross salary or pension contribution from existing or retired public servants has brought approximately €24 million in state revenue since thereforms were implemented last August.

Five-member families may voluntarily contribute the same 1.5% of their gross salaries to ensure coverage. Some sufferersof chronic diseases are automatically entitled to healthcare.

For those not asked to make contributions, there is a sliding income criteria starting at €15,400 yearly for individuals, to €30,750 yearly for four-member families, plus an extra €1,700 per additional dependent, defined to include anyone up to the age of 21, or who is dependent on parents, including students and soldiers.

Under the new system, almost all beneficiaries of state subsidised health care need to pay €3 to see a general practitioner, €6 to see a specialist doctor and €10 to use the state hospitals’ oversubscribed A&E department. Payments are on the spot and a receipt must always be issued.

Patients are also charged a nominal fee of 50 cents for each drug prescription or lab test ordered, with a maximum fee of €10 per transaction.

Non-beneficiaries also have access to the system, on increased charges that are still attractive compared to the private sector.

Non-beneficiaries using state hospitals pay €15 to visit general practitioners and €30 to see specialist doctors.

In the first five months of the new system’s operation, from August 1, 2013 until the end of the year, over €3 million was collected in fees from the A&E department and for pharmaceuticals and lab tests.

Source: Cyprus Mail

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