Economic Results of Health Insurance Companies
Commentary | Contents |
Compared to the corresponding period of 2003, the number of active units in the area of health insurance remained unchanged in Q4 2004—there were 9 active health insurance companies in the CR in that quarter. These health insurance companies employed a total of 7 115 persons (full-time equivalent), which was 0.3% down on the corresponding period in 2003 (7 133 persons). Average monthly wage—calculated from wages excluding other personnel expenses and from the above-mentioned employment figures—increased from CZK 26 536 in Q4 2003 to CZK 27 159 in Q4 2004, growing by 2.4% year-on-year. In Q4 2004 the health insurance companies acquired intangible and tangible fixed assets (including land) worth CZK 101.4 million and CZK 210.4 million, respectively. Insurance premiums written (excluding those paid by the state) edged up to CZK 34.8 billion in Q4 2004 to be by 9.9% up on the corresponding period of 2003. At comparable level, i.e. after contractual and additional health insurance was deducted, the insurance premiums written increased by 10.1%. The accession of the CR to the EU changed the insurance system in consequence. Commercial products of the General Health Insurance Company (VZP ČR) have been taken over by the subsidiary of VZP ČR (Pojišťovna VZP) and contractual partners (commercial health insurance companies Česká podnikatelská pojišťovna, a.s. and Hasičská pojišťovna, a.s.).
Over Q1-Q4 2004, insurance premiums written (excluding insurance premium payments by the state and by Q2 2004 including contractual and additional health insurance), which are the key part of total incomes of health insurance companies, reached CZK 123.4 billion, growing by about CZK 8.5 billion (+7.4%) year-on-year. At comparable level, i.e. after contractual and additional health insurance was deducted, the insurance premiums written increased by 7.6% over this reference period. One should add that the insurance premiums written measured on accrual basis does not show actual incomes of health insurance companies as these are lower by insurance premiums unpaid.
Over the same reference period (Q1-Q4 2004), actual incomes of health insurance companies—the collection of premiums including payments for the insured whose premiums are paid by the state—reached a total of CZK 154.9 billion. In comparison with the corresponding period of 2003, when the incomes amounted to CZK 143.8 billion, this translates into an increase of 7.7 % (source: the Ministry of Health of the CR from the results of the 1st to 12th redistributions of general health insurance premiums in 2004 and 2003). Owing to the fact that in the two measured years there occurred a change in the frequency in the payments by the state for its insurants (it was returnable financial assistance, the so called advance payment, from state budget within the meaning of Act No 592/1992 Coll., Article 12(2) as last amended, which was always paid back in given calendar year), year-on-year comparability of the incomes was not affected. It was affected, though, by extraordinary incomes from outstanding insurance premiums amounting to CZK 1.5 billion, which in 2004 came, unlike 2003, to the general health insurance scheme from resources of Česká konsolidační agentura. Without these extraordinary resources the incomes from the collection of premiums including the state payments would have increased by 6.7 % year-on-year.
Of the total costs of health insurance companies for Q1-Q4 2004 (costs and expenditures obtained by the expenditure approach from the funds of these companies), 94.6 % accounted for health care costs (including contractual and additional health insurance) whose volume increased by 7.2 % year-on-year. At comparable level, i.e. after deduction of contractual and additional health insurance, the volume of health care costs expended from the public health insurance scheme increased by 7.3 %.
The balance sum of health insurance companies (the sum of assets or liabilities) reached CZK 54 billion at the close of 2004, rising by CZK 1.7 billion up on the end of 2003. The acquisition value of (depreciated) intangible and tangible fixed assets – net in the assets of the health insurance companies was CZK 141 million up on the end of 2003.