GHS early contributions above projection at €330 mln

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Income to implement Cyprus’ landmark General Healthcare System (GHS) from March 1 until October 2019 increased by €20 million, while expenditure fell by €50 mln compared to initial projections.

In statements to CNA, Cyprus Health Insurance Organisation’s (HIO) senior officer Angelos Tropis said that contributions for GHS from March 1 until the end of October 2019 reached €330 mln while extra payments made for visits to specialist doctors and the purchase of prescription drugs, since June 1, were about €10 mln.

Referring to the HIO’s estimates on the income from contributions, Tropis said: “We had a positive difference in relation to the income projected by the actuarial study of Mercer consultants, which had estimated that we would receive around €310 million.”

He also said that expenditure for health services offered to GHS beneficiaries launched June 1, when out-patient health services started with a GP referral system, until the end of 2019, reached €230 mln.

Expenditure, the senior HIO officer said, is lower than €280 mln projected in the 2019 budget due to the fact that during the first months the number of doctors who participated in it was not as high as today.

He added that any savings made, are available for the offer of health services to beneficiaries in accordance with the relevant legislation.

Tropis said that once the GHS is fully operational, that is to say from June 1, 2020, when hospital in-patient services will also be available to beneficiaries, the budget will be around €1 billion on a yearly basis or approximately €80 mln per month.

On the basis of an increase in obligatory contributions from March 2020, the HIO is adjusting its planning and no financial problems are expected to arise.

The HIO – tasked with implementing the national health system – is ready to negotiate with private clinics in order to reach an agreement for their participation in the GHS.