Health Insurance Companies: Economic Results
Commentary | Contents |
In Q3 2007 the number of active units operating in the area of health insurance was the same as in the corresponding quarter of 2006, there were a total of nine health insurance companies in the CR. In Q3 2007 health insurance companies employed in total 6 952 persons (FTE), which was 1.3 % less than in Q3 2006 (7 041 persons). The average monthly wage (calculated from wages free of other personnel expenses and from the above number of employed persons) increased from CZK 21 625 in Q3 2006 to CZK 26 077 in Q3 2007 (+20.6% 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 2007 they amounted to CZK 39.4 billion, rising by 10.4 % on Q3 2006. This increase was particularly due to a rise in the insured people’s income and hence rise in health insurance payments. 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.
According to data of the Ministry of Health, the actual revenues of the insurance companies – collection of premiums incl. those for persons paid by the state – reached CZK 147.6 billion in Q1-Q3 2007. We should point out, however, that these revenues of the health insurance companies cannot be compared to those reached in Q1-Q3 2006, considering there was a change in the frequency of payments by the state for its ensured (return assistance called “advance payment” from the state budget within the meaning of Section 12(2) of Act No. 592/1992 Sb.) amounting to CZK 5.5 billion. In Q3 2006 CZK 2.8 billion was repaid and total revenues reached CZK 135.3 billion. In Q1-Q3 2007 there was no “advance payment”. Without the advance payment in Q1-Q2 2006, revenues from premiums incl. payments by the state would have increased by 11.3 % year-on-year 1).
Of the total costs of health insurance companies in Q3 2007 (costs and expenses established by expenditure approach from respective funds of health insurance companies), 94% 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 6.4% year-on-year (see Table 3). Costs of in-patient services make up a key proportion of health care costs (53%); they grew by 9.9% compared to the corresponding period of 2006.
In Q3 2007, the health insurance companies acquired intangible and tangible fixed assets (incl. land) worth CZK 50.8 million and CZK 51.1 million, respectively. The balance sum of the health insurance companies (the total of assets or liabilities) reached CZK 82.8 billion at the end of Q3 2007and, compared to the end of Q2 2007, it increased by CZK 9.7 billion. The acquisition value of intangible and tangible fixed assets (depreciated) – net in assets of the health insurance companies was CZK 17.9 million down on Q2 2007.
1 According to the CZSO’s calculations, the actual revenues of the health insurance companies reached CZK 50 billion in total in Q3 2007. We should point out, however, that these revenues are not comparable due to the same reason as mentioned above in the text. Without the “advance payment”, revenues from premiums incl. payments by the state would have increased by 10.6 % year-on-year.