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 as in the corresponding quarter of 2004—there were a total of nine health insurance companies in the CR in Q1 2005 with a total of 7 174 employees (FTE), which was 0.8% up on Q1 2004 (7 117 employees). The average monthly wage (calculated from wages free of other personnel expenses and from the number of the employed persons above) increased from CZK 17 910 in Q1 2004 to CZK 18 639 in Q1 2005 (+4.1% year-on-year)
Premiums written (excl. those paid by the state) make up a substantial part of total revenues of health insurance companies. In Q1 2005 they amounted to CZK 29.4 billion, rising by 4.7% on Q1 2004. This increase was also contributed to by a rise in the minimum wage from CZK 6 700 to CZK 7 185 (Government Regulation No. 699/2004 Coll.) because payments of health insurance premiums are derived in some cases from the level of minimum wage. It should be also noted that the premiums written measured on accrual basis are not actual revenues of health insurance companies as these are lower by premiums not paid. The actual revenues of the insurance companies—collections of premiums incl. those for persons paid by the state—stood at CZK 42.5 billion in Q1 2005 and were 4.1% up on Q1 2004 (CZK 40.8 billion) (source: the Ministry of Health of the CR; from the results of the first to third redistribution of general health insurance premiums in 2005 and 2004). The revenues of the health insurance companies in this period cannot be compared—although both Q1 2004 and Q1 2005 saw a change in the frequency of payments by the state for its insurants (returnable financial assistance, “advanced payment”, from the state budget within the meaning of Article 12(2) of Act No. 592/1992 Coll.) amounting to CZK 2.8 billion, in Q1 2004, unlike Q1 2005, the system started receiving revenues from outstanding premiums obtained by the health insurance companies from Česká konsolidační agentura, amounting to CZK 0.7 billion.
Without this advanced payment in the first quarters of the years compared and without the revenues from the outstanding premiums, in Q1 2004, the revenues from the collection of premiums also including the payment by the state would have risen by 6.3% year-on-year.
Of the total costs of health insurance companies in Q1 2005 (costs and expenses established by expenditure approach from respective funds of health insurance companies), 97.6% accounted for health care costs (paid from the basic health insurance fund and the prevention fund or possibly from the preventive care fund); these costs increased by 3.6% year-on-year. Institutional care costs make up a key proportion in health care costs (46.8%). The highest rise was recorded for costs of prescribed medicines and medical devices, which were by 6.5% higher year-on-year.
In Q1 2005, the health insurance companies acquired intangible and tangible fixed assets (incl. land) worth CZK 23 million and CZK 58 million, respectively. The balance sum of the health insurance companies (the sum of assets or liabilities) reached CZK 54.3 billion at the close of the quarter, decreasing by CZK 0.8 billion on the end of 2004. The acquisition value of intangible and tangible fixed assets (depreciated) – net in assets of the health insurance companies was CZK 24 million down on the end of 2004.