Economic Results of Health Insurance Companies
Commentary | Contents |
In Q2 2006 the number of active units operating in the area of health insurance was the same as in the corresponding quarter of 2005, there were a total of nine health insurance companies in the CR. In Q2 2006 there were in total 7 071 employees (FTE), which was 1.6% less than in Q2 2005 (7 183 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 24 728 in Q2 2005 to CZK 26 477 in Q2 2006 (+2.9% year-on-year).
Premiums written (excl. those paid by the state) make up a substantial part of total revenues of health insurance companies. In Q2 2006 they amounted to CZK 34.8 billion, rising by 6.4% on Q2 2005. This increase was also contributed to by a rise in the minimum wage from CZK 7 185 to CZK 7 570 (Government Regulation No. 513/2005 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 92.9 billion2 2 The actual revenues of the insurance companies reached in Q2 2006 in total CZK 46.6 billion, which meant an increase of CZK 6.8 billion i.e. growth of 17.2 % (calculations of the CZSO) compared to the same period in 2005. This increase was also contributed to by a rise in the assessment basis in the amount of cca CZK 1.3 billion (calculations of the CZSO) for those persons whose insurance is paid by the state. In accordance with Act No. 117/2006 Coll. since 1 April 2006 the state pays for the so-called “state insurants” monthly insurance in the amount of CZK 636, instead of the present CZK 560.
, in Q1- Q2 2006 and were 12.9% up on Q1- Q2 2005 (CZK 82.2 billion) (source: the Ministry of Health of the CR; from the results of the first to sixth redistribution of general health insurance premiums in 2006 and 2005). The revenues of the health insurance companies in this period cannot be compared—although both Q1- Q2 2005 and 2006 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.) however while in Q1 – Q2 2006 it concerned two “advanced payments” in general health insurance in the amount of CZK 5.5 billion, the same period of 2005 then one “advanced payment” in the amount of CZK 2.8 billion. Without the advanced payment in Q1 – Q2 of the years compared the revenues from the collection of premiums also including the payment by the state would have risen by 10.0% year-on-year.
Of the total costs of health insurance companies in Q2 2006 (costs and expenses established by expenditure approach from respective funds of health insurance companies), 95.4% 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 0.9% year-on-year (see Table 3). Institutional care costs make up a key proportion in health care costs (48.8%), these had the highest increase compared to same period of 2005 (+7.4%).
Compared to Q2 2005 costs of prescribed medicines and medical devices given out on vouchers decreased by CZK 0.6 billion. The drop of the business mark-up could have also contributed to this decrease because since January 2006 the trade margin of distributors and pharmacies was cut down from 32% to 29%.
In Q2 2006, the health insurance companies acquired intangible and tangible fixed assets (incl. land) worth CZK 39.6 million and CZK 63.4 million, respectively. The balance sum of the health insurance companies (the sum of assets or liabilities) reached CZK 58.4 billion at the close of Q2 2006, increasing by CZK 1.8 billion on the Q1 2006. The acquisition value of intangible and tangible fixed assets (depreciated) – net in assets of the health insurance companies was CZK 26,1 million down on the Q1 2006. Long-term and short-term payables and temporary accounts of liabilities reached by the end of Q2 2006 CZK 28.5 billion and compared to Q2 2005 decreased by approximately CZK 2 billion.
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2 The actual revenues of the insurance companies reached in Q2 2006 in total CZK 46.6 billion, which meant an increase of CZK 6.8 billion i.e. growth of 17.2 % (calculations of the CZSO) compared to the same period in 2005. This increase was also contributed to by a rise in the assessment basis in the amount of cca CZK 1.3 billion (calculations of the CZSO) for those persons whose insurance is paid by the state. In accordance with Act No. 117/2006 Coll. since 1 April 2006 the state pays for the so-called “state insurants” monthly insurance in the amount of CZK 636, instead of the present CZK 560.