Economic Results of Health Insurance Companies
Commentary | Contents |
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 Q3 2005 with a total of 7 177 employees (FTE), which was 1.5% up on Q3 2004 (7 069 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 19 610 in Q3 2004 to CZK 20 591 in Q3 2005 (+5.0% year-on-year)
Premiums written (excl. those paid by the state) make up a substantial part of total revenues of health insurance companies. In Q3 2005 they amounted to CZK 32.8 billion, rising by 8.6% on Q3 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 health insurance companies—collections of premiums incl. those for persons paid by the state - reached CZK 121 billion1 in Q1-Q3 2005 which was 3.2% up on the same period in 2004 (CZK 117.3 billion) (source: the Ministry of Health of the CR; from the results of the first to sixth 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-Q3 2004 and Q1-Q3 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. As amended) amounting to CZK 2.8 billion.
The instalment of the provided finanncial resources, however, was paid in Q4 2004, while the first instalment of these resources was already paid in Q3 2005 in the amount of CZK 1.4 billion. The same amount of the second instalment is going to be paid in Q4 2005. Further, during the year 2004 the systém started receiving revenues from outstanding premiums obtained by the health insurance companies from Czech Consolidation Agency (Česká konsolidační agentura), reaching CZK 1.4 billion, no financial resources were paid in by ČKA in the same period of 2005. Without this advanced payment and the revenues from the outstanding premiums in both compared years 2005 and 2004, the revenues from the collection of premiums including the payment by the state would have risen by 5.8% year-on-year.
Of the total costs of health insurance companies in Q3 2005 (costs and expenses established by expenditure approach from respective funds of health insurance companies), 97.9% 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 6% year-on-year (see sign No. 3). A key proportion in health care costs make up institutional care costs (49.1%), which had the highest increase (+11.2%) when compared to the same period in 2004.
In Q3 2005, the health insurance companies acquired intangible and tangible fixed assets (incl. land) worth CZK 38.9 million and CZK 170.4 million, respectively. The balance sum of the health insurance companies (the sum of assets or liabilities) reached CZK 57.1 billion at the close of Q3 2005, increasing by CZK 1 billion on the end of Q2 2005. Equity capital increased (CZK 1.1 billion), whereas long-term and short-term payables and temporary accounts of liabilities were down by CZK 0.1 billion (see sign No. 4).
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1 The actual revenues of the health insurance companies reached CZK 38.7 billion in Q3 2005 which was 1.3% up on the same period in 2004 (calculation of CZSO).