"You have to finish the game with the numbers" "kleinezeitung.at

Strong HR criticism on the presentation of the costs. Notice of Assessment: "There is a lack of transparent and understandable calculation bases".

3:50 am, October 19, 2018

The Court of Auditors strongly criticizes the proposed social security reform proposed by the government. In particular, the presentation of costs is, in the opinion of the examiner, insufficient. "There is a lack of transparent and understandable calculation bases," says the opinion. President Margit Kraker calls for a revision of the presentation of costs: "You must end the game with numbers."

Addressing the APA, Kraker criticized the lack of evidence to save the billion claimed by the government. And for the 33 million euros mentioned in the remarks until 2023, it was not clear how to do that. "The base is incomprehensible." In addition, the expected additional costs were concealed, criticized the president of HR. She called for a "transparent presentation" and serious planning and said that an unclear presentation could create uncertainty that could undermine the reform.

Cost representation "incomprehensible"

In its opinion, the HR also criticizes that the presentation of the costs does not respect the legal requirements. It is "incomplete, based on incomprehensible fundamental principles, so it is not appropriate to provide the legislator with a valid basis for decision-making".

There is no justification for the badumption of a 10% reduction in administrative costs. "Although HR expressly supports the goal of effective administration, it highlights the risk that staff reductions, without the badociated process changes, may have a direct economic disadvantage for the insured. "

In addition, merger costs (new office leases, computer conversions, consulting fees, etc.) are criticized for not being evaluated. The HR expressly draws attention to the cost of merging the pension insurance institutions of workers and employees in 2007, which amounted to 114.8 million euros, highlighting "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.

Although health officials advocate for increased efficiency and standardization of services, their implementation is not partially implemented. Thus, the number of social security funds would be reduced "nominally" to five, in fact, there were still ten carriers. 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 farmers' and the company's insurance companies are merged, but their respective contribution and performance rights remain unchanged, the HR said. He underlines "the risk that the merger could – without a clear regulation of the right to benefit – raise the new company's tariffs, which would entail significant additional costs". The same is true for the different requirements imposed on civil servants, contract agents, railway workers and squires in the mining industry.

Also with the ÖGK, there is no "direct material standardization of the right to profit", as regional differentials in relation to total contracts have to be negotiated. The financial volume of these regional characteristics is also open. Effective standardization for policyholders does not occur in newly created institutions, although the harmonization of benefits is one of the central objectives of the reform, the HR criticizes.

Inspectors also consider that "unsecured" is an "administrative and effective review of contributions" that must be transferred from funding to funding. HR fears here "a further increase in the complexity of the administrative organization" and recognizes the risk that the specific interests of social security are not sufficiently taken into account.

"Difficult" for HR is the planned abolition of the control badembly in institutions. Given the high volume of transactions (63.9 billion euros in 2018), "a supervisory body is absolutely necessary from the point of view of HR".

Finally, the review body also points out that the content requirements of health care reform are not being implemented by this project.