NHS plan has insurance companies worried

THE CYPRUS Association of Insurance Companies (CAIC) yesterday expressed concern over the reported absence of transparency and open dialogue in the drafting of a national health bill in Cyprus.

The CAIC also questioned the estimated cost of a plan that is based on a study conducted in 2002.

“Considerations such as longevity, the rapid technological advances in the area of healthcare and the huge increase in medical costs are serious challenges faced on an international scale by national health plans and at a period of international financial crisis, serious thought should be assigned to them,” said Stefi Drakou, President of the CAIC.

According to Drakou, the process of putting together a National Health System in Cyprus suffers from lack of transparency as important stakeholders, including insurance companies, are not included in the dialogue.

“Last summer a study was performed for the Health Insurance Organisation, for which our association has not been officially informed.

“This is an indication of the lack of transparency that exists on the creation of the NHS. Our association has never been called to submit our opinion on the plan, even though we are the biggest buyer of health services, with €40 million in 2008,” she said.

Based on the CAIC’s statistics, the private health sector is widely growing in Cyprus as its revenue has increased from €29 million in 2004 to €69 million in 2008.

“These figures indicate that people are turning more and more to the private sector,” Drakou said.

The CAIC would like to see a re-orientation of the health plan that would allow the smooth co-existence of public and private health plans.

“We are in favour of a national health plan that brings a substantial improvement to the quality of medical care through the implementation of a correct legal framework.

“It is imperative that a new study is held based on new realities, and that the correct environment is developed to allow the co-existence of private and public health plans, while there is a higher probability for success if it is implemented gradually.”