Economic Results of Health Insurance Companies
Commentary | Contents |
Brief analytical comments
The number of active units operating in the area of health insurance was the same in the third quarter of 2004 as in the corresponding quarter of 2003 - there were a total of nine health insurance companies operating in the CR.
The major part of the yields of the health insurance companies consists of insurance premiums written which is free of insurance premium payments by the state and this quarter also without revenues from contractual and additional health insurance. The accession of the Czech Republic to the EU brought a change in the health insurance system. The commercial products of VZP ČR (General Health Insurance Company of the CR) were taken over by VZP ČR’s subsidiary (Pojišťovna VZP, a.s.) and contractual partners – commercial insurance companies (Česká podnikatelská pojišťovna, a.s. and Hasičská pojišťovna, a.s.). In 3rd quarters 2004 the insurance premiums written reached CZK 30.2 billion and were by 8.8 % up on 3rd quarters 2003. At comparable level, i.e. after deduction of contractual and additional health insurance, the insurance premiums written increased by 9.3 %. It should be noted that insurance premiums written measured on accrual basis do not express actual revenues of health insurance companies as these are lower by unpaid premiums.
Over the 1st to 3rd quarters of 2004, the actual incomes of the health insurance companies – i.e. the collection of premiums including payments for the insured whose premiums are paid by the state – totalled CZK 117.3 billion. In comparison with the corresponding period of 2003, when the incomes amounted to CZK 107.3 billion, this translates into an increase of 9.3 % (source: the Ministry of Health of the CR, from the results of the 1st to 9th redistributions of general health insurance premiums in 2004 and 2003). The incomes of the health insurance companies in these periods cannot be compared because there was a change in payments by the state for its insurants in the 1st to 3rd quarters 2003 (it was the returnable financial assistance - the so called advance payment – from state budget within the meaning of Act No 592/1992 Coll. Article 12(2)) amounting to CZK 2.7 billion. The 1st to 3rd quarters of 2004 also saw a change in the frequency of payments by the state, this time amounting to CZK 2.8 billion. The financial resources obtained in this way will be paid back in the 4th quarter of 2004. Furthermore, the system started receiving outstanding premium incomes from the Czech Consolidation Bank during 2004, amounting to CZK 1.4 billion. Had the advanced payment not been provided and without the outstanding premium incomes in the years 2004 and 2003 under comparison, the incomes from the collection of premiums including the payment by the state would have increased by 6.7 % year-on-year.
Of the total costs of health insurance companies for 3rd quarters 2004 (costs and expenditures obtained by the expenditure method from the respective funds of these companies), 95.1 % accounted for health care costs (i.e. only from public health insurance) whose volume (including contractual and additional health insurance) increased by 5.9 % year-on-year. At comparable level, i.e. after deduction of contractual and additional health insurance, the volume increased by 6 %.
In the third quarter of 2004, the health insurance companies employed a total of 7 069 persons (f/t equivalent) – a belittle of 0.6 % year-on-year (7 110 persons in the 3rd quarter of 2003). The average monthly wage (calculated for the employment figures above and exclusive of other personnel costs) increased from CZK 18 579 in the third quarter of 2003 to CZK 19 610 in the third quarter of 2004, thus growing by 5.5 % year-on-year.
In the third quarter of 2004, the health insurance companies acquired intangible and tangible (incl. land) fixed assets worth 39.1 million CZK and 76 million CZK, respectively.
The balance sum of health insurance companies (the sum of assets or liabilities) reached CZK 51 billion at the close of the third quarter of 2004 rising by CZK 1.3 billion on the end of 2003. The acquisition value of (depreciated) gross tangible and intangible assets – net of the health insurance companies was CZK 247.3 million down on the end of 2003.