Hungarian minister announces end of public-private healthcare divide

During a conference hosted by the Hungarian Hospital Association, Péter Takács, the Minister of State for Health, declared the conclusion of the division between public and private healthcare. With an air of anticipation, the minister outlined the government’s forthcoming plans to regulate their harmonious coexistence. Furthermore, the minister underscored the imminent need for governmental intervention to determine the inclusion of specific private healthcare providers within publicly funded care in the long run.

Key points from the conference

At the conference, Péter Takács highlighted Prime Minister Viktor Orbán’s intention to restore the insurance role of NEAK (National Health Insurance Fund Management Agency) during the January cabinet meeting according to Portfolio. Currently, the State Secretariat is working on this initiative with an emphasis on maintaining NEAK’s dominance over the insurance market while keeping it shielded from private interests. Péter Takács highlighted the forthcoming implementation of stronger control and service purchasing functions for NEAK, with new regulatory frameworks being developed.

Once these are established the government plans to transition to sector-neutral funding, marking a novel approach towards the private sector. The Minister mentioned that moving forward would necessitate a government decision regarding which private providers would be included in publicly funded care in the long term. As soon as this decision is made, wage subsidies can be integrated into the financing and sector-neutral financing can be introduced. Furthermore, Takács highlighted the imperative of defining the scope of reimbursable benefits, clarifying that funding allocation to private providers will not be contingent on waiting lists, whilst reminding stakeholders of the existing social security funding allocated to certain private entities.

Reaction to the announcement

The health section of the National Association of Entrepreneurs and Employers (VOSZ) welcomed Minister of State Péter Takács’ announcement regarding NEAK’s transition towards a genuine insurance-centric funding model and the pursuit of sector neutrality. VOSZ considers these measures pivotal and advantageous, provided that the detailed regulations guarantee the effectiveness and practicality of the new system, as per Portfolio.

The health section also expressed long-standing advocacy for the notion of elevating healthcare standards and accessibility by empowering individuals to opt for reputable private providers for specific services. They believe that this approach will validate the contributions of Hungarian citizens towards social security while alleviating strain on the state healthcare apparatus, particularly in domains like orthopaedic and obstetric care.

However, the organisation represented by Lajos Fábián, co-president of VOSZ and president of its Health Section stresses the need for further clarification on various aspects, highlighting the complexity inherent in the details of the proposed changes. They present several critical inquiries regarding the restructuring of NEAK, encompassing concerns such as NEAK’s contracting procedures for waiting list benefits and other services, the uniformity of reimbursement rates for all contractors and providers as well as the management of provider funding during the transition phase and the timeline for NEAK’s transformation into a genuine insurer.

Furthermore, deliberations extend to the potential establishment of a foundational healthcare package, financing of uncovered services and ensuring unfettered access to eligible services for applicants. Questions also probe the feasibility of fostering provider competition predicated on quality and achieving sector neutrality in complication reimbursement.

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