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PM's version of health insurance reform - Hungary

There is place for private funding in the healthcare sector; but the change has to be started by establishing regional healthcare funds to ensure a safe transition, PM Ferenc Gyurcsány presented his ideas concerning the reform of the social security system at a press conference yesterday.

Later these regional funds may enter each others service area, he added. Private capital, even profit-focused insurance companies will be welcomed to joint the funds; but only as minority owners. The equity influx from co-owners would be used for the development of services. The health contributions will still be set by the government and a basic service will be available to everybody – these basic services cover the currently available services. But there will be competition among health service providers. The reform bill should be ready by autumn, so the new system can be launched in 2008, Gyurcsány added. (Gazdasági Rádió, Napi Gazdaság, Magyar Hírlap)