VšZP has a record loss

State-run health insurer Všeobecná Zdravotná Poisťovňa (VšZP) reported a record-high loss of €137 million in august. This stems from the analysis carried out by the Deloitte company which the current head of the insurer, Miroslav Kočan, ordered shortly after being appointed to the post, the Sme daily reported.

The insurer may now need €51 million at the year’s end to cover health treatment.

“It will need additional resources in the form of a deposit from the shareholders – it should either receive it from the state or take a loan for at least €51 million,” financial manager and former auditor Marián Jánoš told Sme.

The former option is however less probable as the state has already tried to help in 2004, an action which was criticised by the European Commission, the daily wrote.

VšZP however does not admit any shortage of finances allocated for the health care of its clients.

“We will have enough money to fully cover the payments of health-care providers,” said the insurer’s spokesperson Petra Balážová, as quoted by Sme.

Also Kočan says that a situation where they would be unable to cover health treatment will certainly not occur.

The state insurer has been in the red previously. At the time the state helped it to recover, either by increasing its basic capital or merging it with the now-defunct state insurer Spoločná Zdravotná Poisťovňa, Sme wrote.

The loss may now continue increasing to a total of €280 million. It is possible that the financial problems occurred under the insurer’s previous management led by Miroslav Vaďura. During his term, the insurer underestimated the reserves needed for health care, Kočan claims.

VšZP ended last year with a €17-million profit, thanks to which the management was able to distribute bonuses. As a result, the new management turned to the police, Sme reported.

Meanwhile, VšZP will have to adopt a recovery plan or measures to stop the loss increase, Kočan claimed.