Court of Auditors: Destructive criticism of the merger of health insurance companies

Court of Auditors: Destructive criticism of the merger of health insurance companies

VIENNA. The Bavarian Court of Auditors does not pay much attention to the planned health insurance reform: the calculations are "incomprehensible" and HR President Margit Kraker warns of additional costs that have not been not taken into account.

Demonstration in Linz: 1000 protesters against the fund merger An image: VOLKER WEIHBOLD

Today, Friday, the revision period of the federal law on the merger of health insurance funds comes to an end. Trade union demonstrations took place yesterday in all federal states; and one of the most critical statements was made yesterday by the Federal Court of Accounts (HR). The latter questions in principle the cost and savings accounts quoted by the government: "There is a lack of transparent and understandable calculation bases," says the health representative in his statement. "You have to finish the game with numbers," said Margit Kraker, president of HR.

Kraker is missing in almost every key data, what the government has called the "understandable basis".

It starts with the target of targeted savings. Savings of up to 1 billion euros have been announced by 2023. The evaluation project, sent by the Ministry of Social Affairs, reported 350 million euros, which should to be reached by 2026 thanks to a reduction in the workforce. By 2023, the potential to be increased is 33 million euros.

Uncalculated costs

The 33 million euros mentioned in remarks until 2023 will not be achieved, Kraker said. For a reduction of administrative costs of 10%, there is no substantive justification.

In addition, the additional costs that can be expected from cash pooling would not be badessed. RH specifically draws attention to the costs badociated with the merger of workers' and employees' pension schemes in 2007, amounting to EUR 114.8 million, and mentions' the risk that avoidable additional expenses may arise in the proposed merger without further action ". The net result of the proposed measures for the "Austrian Health Insurance Fund" (ÖGK) resulting from the combination of health insurance funds could not be "positive" in the first five years as indicated, but – even taking into account the costs of merger.

"Increased efficiency and standardization of services", advocates indeed the SR But if this is realized, he doubts. Although the number of insurers is reduced from 21 to five in nominal terms, there will actually be ten. Four of the five health insurance funds of the current companies must continue to exist as social protection institutions of the companies (only the counter of the Vienna public transport company will be dissolved), as well as that notary insurance. The project also does not cover the 15 health care facilities.

The promised harmonization of performance also leaves HR skeptics: even with health insurance funds merged into the "Austrian Health Insurance Fund" (ÖGK), there is no "direct material standardization of benefits" because Regional differentiations in relation to global contracts are said to be "negotiated". The financial volume of these regional characteristics is also open.

In the case of farmers' and businessmen's funds, which are combined, contribution and benefit entitlements remain the same: with this example, RH warns against the risk that, without clear regulation of benefits, "the tariffs for the merged carrier may increase significant additional costs". (Bock)

Read also: "Luftschlossgefahr" – Comment by Wolfgang Braun, Political Director of OÖN

The controversial reform

Merger: The nine health insurance funds are to be absorbed into the "Austrian Health Insurance Fund" (ÖGK) headquartered in Vienna. There is also a common fund for the self-employed and farmers, as well as for utilities, railways and mines. The Allgemeine Unfallversicherungsanstalt (AUVA) remains in place, but is financially "thinned".

The government has not quantified the costs of the merger, but described the administrative effect as a savings of up to one billion euros. In Germany and Switzerland, money mergers have not resulted in savings for the administration.

Health insurance funds such as the OÖGKK are criticized for the fact that the insured money is deducted in Vienna: in the country, only the sum of insured contributions must remain (in Upper Austria, 85% of the total income of the OÖGKK).

The GKK also warn against the erosion of self-government. In the ÖGK, the board of directors must be provided equally with six representatives of the employer and employees. On the other hand, there are also constitutional concerns.

View Comments »