Ministerie van Volksgezondheid, Welzijn en Sport The Dutch Healthcare Reform: Towards Private Healthcare for All Visit Dr. Hlavacka and delegation Slovak.

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Ministerie van Volksgezondheid, Welzijn en Sport The Dutch Healthcare Reform: Towards Private Healthcare for All Visit Dr. Hlavacka and delegation Slovak Republic Geert Jan Hamilton Director of Legislation and Legal Affairs Ministry of Health, Welfare and Sports

Ministerie van Volksgezondheid, Welzijn en Sport General health information Total population: 16,2 mln. GDP per capita € 23,000 Life expectancy at birth m/f (years): 75.8/80.7 Healthy life expectancy at birth m/f (years): 68.7/71.1 Child mortality m/f (per 1000): 6/5 Adult mortality m/f (per 1000): 97/66 Total health expenditure per capita (Intl $): 2,255 Total health expenditure as % of GDP: 8.1 (WHO 2004)

Ministerie van Volksgezondheid, Welzijn en Sport Population in the Netherlands by age and sex on January 1,

Ministerie van Volksgezondheid, Welzijn en Sport Population in the Netherlands by municipality 1950 and 2000

Ministerie van Volksgezondheid, Welzijn en Sport

Three characteristics of Dutch health care The mix of public and private finance The predominantly private character of supply Sharing of responsibilities between government, health insurers and providers of care (pluralism)

Ministerie van Volksgezondheid, Welzijn en Sport Development of legislation Origin: private mutuality 1941: Obligatory health insurance for low income employees 1966: Law on social insurance 1968: Law on exceptional medical benefits 1971: Law on provision of hospital care (planning act) 1982: Law on tariffs in health care 1986: Law on access to private health insurance

Ministerie van Volksgezondheid, Welzijn en Sport Laws of the ninetees Law on the medical contract (chapter of Civil Code) Law on Medical Professions Law on Quality in Health Care Institutions Law on Complaint Procedures Competition Law

Ministerie van Volksgezondheid, Welzijn en Sport Three compartments in dutch health care system    Long term care (AWBZ) Social Health insurance Private health insurance Additional care and cure private complementary insurance cure

Ministerie van Volksgezondheid, Welzijn en Sport Financing health care expenditures 2001 (€ 81 billion)

Ministerie van Volksgezondheid, Welzijn en Sport Financing health care expenditures 2001 (€ 81 billion)

Ministerie van Volksgezondheid, Welzijn en Sport Organisation Ministry of Health, Welfare and Sport Board of hospital buiding Health insurersProviders Patients/insurers Board of health insurance Board of tariffs in health care

Ministerie van Volksgezondheid, Welzijn en Sport Reforms in social health insurance in the nineties Reintroduction of competition in social health insurance Freedom of choice of the insured Abolition of the obligation of sickness funds to contract all suppliers Growing role of competition law in social health insurance

Ministerie van Volksgezondheid, Welzijn en Sport Tensions/frictions Tensions between legal right to benefits and measures of cost containment Waitings lists Borderline bureaucracy between public and private insurance

Ministerie van Volksgezondheid, Welzijn en Sport Reforms on their way Less central steering; more local responsibilities More private out patient clinics Radical reform of hospital financing: from budget financing towards payment for diagnosis treatment combination (“DRG’s”)

Ministerie van Volksgezondheid, Welzijn en Sport Big reform on health insurance; drivers: Desire to have a stronger demand focus Desire to have less government interference (in planning and tarification) Renewed definition of responsibilities Dual system has led to a complicated steering mechanism Ongoing borderline and solidarity issues

Ministerie van Volksgezondheid, Welzijn en Sport New basic insurance for curative care (2006) New private insurance for all Obligation for citizens to buy health insurance Obligation for insurers to accept insured without risk selection Legal description of entitlements Free choise of insurer; choise of policy (benefits in kind or reimbursement; different deductibles) Fixed nominal premiums Employer contribution A legal system of risk adjustment State compensation for low income people No claim refund

Ministerie van Volksgezondheid, Welzijn en Sport Money flow in private health insurance Insured person Central cash fund Health insurer Health care provider Income related premium Fees, tariffs, budget Nominal premium Copayment Risk adjusted budget

Ministerie van Volksgezondheid, Welzijn en Sport Compatibility with European insurance directives? Social security systems out scope of insurance directives Commission-Belgium judgement of EC Court of Justice; Article 54 of third insurance directive; European Commission: Member State can adopt specific legal measures to protect the general interest; Duty to accept; basic minimum cover; solidarity based premiums (non discrimination); equalisation of risks: measures that can be justified under art. 54.

Ministerie van Volksgezondheid, Welzijn en Sport Adapting the European non- life insurance directives? Complementary insurance in France Rocard resolution A directive for health insurances? Balancing internal market principles and the European social model New Dutch health insurance opens up market of health insurance.