In a significant move, the Chamber of Deputies of the Czech Republic has voted to scrap the long-standing monopoly of Pojistovna VZP, the subsidiary of the General Health Insurance Company (VZP), on health insurance for foreigners with long-term residence in the country. The bill, proposed by the Senate, has now been forwarded to the Senate for further debate, raising hopes for a fairer and more competitive health insurance market.

Under the proposed bill, the Chamber of Deputies increased the limit of health insurance coverage for foreigners with long-term residence to 400,000 euros, surpassing the Senate’s recommendation of doubling the limit to 120,000 euros. The introduction of a five-year monopoly for Pojistovna VZP had been approved in the previous election term, despite opposition from various stakeholders such as the ministries of interior and health, the Czech Association of Insurance Companies, and the Chamber of Commerce.

One of the main arguments against the monopoly was its potential violation of European law. Additionally, proponents of the current system emphasized the need to address the issue of doctors providing medical care to foreigners without assurance of reimbursement. The Senate’s proposal includes the establishment of a register of health insurance for foreigners, to be administered by the Czech Insurance Office. This register would contain relevant information on commercial health insurance for foreigners and would be accessible to healthcare institutions and, if necessary, the police.

The amendment aims to provide greater flexibility for foreigners, allowing them to terminate their contract with Pojistovna VZP within three months and choose another insurance company. Furthermore, insurance companies will be required to renew travel health insurance for insured individuals who wish to continue coverage. This provision seeks to prevent situations where a sick foreigner remains uninsured while in the Czech Republic.

The Czech Association of Insurance Companies has expressed its satisfaction with the outcome of the vote in the lower house. Jan Matousek, the director of the association, believes that the abolition of the monopoly for Pojistovna VZP will level the market conditions in the insurance of foreigners and ultimately provide clients with a choice and improved quality of service.

The bill’s advancement to the Senate signals progress towards a more inclusive and competitive health insurance landscape in the Czech Republic. If the Senate supports the bill, it will mark a significant milestone in ensuring fair access to health insurance for foreigners with long-term residence and pave the way for enhanced customer satisfaction and improved healthcare services in the country.

Article by Prague Forum