Vietnam Health Insurance Fund Surplus Estimated at VND5.2T as of End 2014

Vietnam’s Health Insurance Fund is estimated to have a surplus of VND5.2 trillion ($233.18 million) as of end 2014, according to the agency’s report. The Health Insurance agency have save trillions of dong each year starting 2010 after reforming its management system to efficiency-based, the online newswire Vietnamnet said on Oct 27. In addition, Deputy Minister of Health Nguyen Thi Minh, also Head of Vietnam Social Insurance Agency, said that the fund is enough to supplement the coming medical fees hike. The fund will be enough to cover medical fees until 2017, Ms. Minh said, adding that the agency is only collecting insurance at the 4.5% rate, lower than the 6% ceiling rate set by the National Assembly. The agency will adjust the premiums in 2018 when all healthcare administrative fees are taken into account when calculating medical fees. Earlier this week, health officials announced that medical fees at public hospitals will increase between two-fold and seven-fold from the current rate starting November 15. The new rate will initially affect those are covered by insurance but have co-payment option, said Mr. Pham Luong Son, head of the department for health insurance policy implementation, adding that by March next year, the rate will be applied for uninsured people. Currently, 73% of the country’s population is covered by health insurance, which means about 25 million people are paying hospital fees by themselves, Mr. Son said, adding that these uninsured people will be heavily affected by the upcoming hike in hospital fees, the second increase since 2012.(Vietnamnet.vn Oct 27)