Vietnam 2014 Health Insurance Fund Likely to Face $464M Overspending

Vietnam’s health insurance fund is likely to face a VND9.8 trillion ($464.5 million) overspending next year due to higher healthcare fees, said Le Van Phuc from the Vietnam Social Insurance Agency. Mr. Phuc released the figure at a meeting in Ho Chi Minh City on Dec 24 to review the his agency’s work, saying that the ministry plans to continue raising hospital fees, particularly expenses for sickbeds and surgery services. The agency had sought the government’s approval to increase health insurance premiums to 6% from the current 4%, he said, however, attributed that the government had not agreed with the premium hike to mitigate financial burdens on local residents amid the persistent economic hardship. Speaking at the event, participants suggested encouraging people to apply for voluntary health insurance and shifting from individual to family health insurance. The Ministry of Labor, War Invalids and Social Affairs should also set specific regulations and criteria on the average living standards for local agriculture, fisheries and forestry laborers so that they can become eligible to enjoy the 30% subsidy of health insurance premium supported by the state, they added. Vietnam aims raise the percentage of health insurance coverage to more than 70% of the national population by 2015 and 80% by 2020 from the current 68%. To encourage the entire population to join heath insurance network, he emphasized the need to streamline administrative procedures and increase the quality of medical service as well as the attitude of health workers toward insured patients. In 2013, the health insurance fund has a surplus of over VND2 trillion instead of the earlier overspending forecast of VND10 trillion, according to data from the social health agency. (http://vtc.vn Dec 25, Nong Thon Ngay Nay – Countryside Today Dec 24 p3)