Significant cost reductions in health insurance nationwide due to millions dropping coverage.
The Austrian Health Insurance Fund (ÖGK) is pulling out all the stops to balance its books by next year, aiming for a "zero deficit" budget, otherwise known as a "black zero."
This mission was set in motion following an intensive round of cost-cutting measures, green-lit at the supervisory board meeting and general assembly last week. The ÖGK's plan of action includes both internal adjustments and patient-facing changes.
MRI scans, CT scans, and physiotherapy therapy are set to be restricted once again, requiring approval, much like in the past. Moreover, patients will need to chip in for transportation costs going forward.
Peter McDonald, the CEO of ÖGK, took the reins a few months ago with a colossal deficit forecast of 900 million euros largely due to external factors such as the aging of baby boomers, escalating medical advancements, the trend towards more heavily-subsidized outpatient care, and the ongoing recession, which has hit the fund's income.
The deficit is projected to shrink to 250 million euros this year.
The objective now is to maintain premium healthcare services under the e-card system without creating an undue burden on the insured. With the measures in place today, the deficit should drop from the estimated 900 million euros to 250 million euros this year. The "black zero" should be achieved by 2026, with contingency reserves established to prepare for ongoing demographic challenges.
Long-term structural changes are on the horizon, but the emphasis is on immediate, necessary steps first. The government's measures, like raising health insurance contributions for pensioners, are anticipated to offer some relief. Further respite is expected to materialize from political initiatives yet to be announced.
The ÖGK will also prioritize internal savings. The plan is to leave second pension positions unfilled this year, amounting to 86 full-time equivalents, bringing the total to 200 since the fund's merger. Leased employees will see a decrease in numbers as well, and the fund will trim down its administrative building space by 10%. Investments will undergo a review to identify areas where delays are possible.
But patients won't escape unscathed, even as the focus is on correcting over-provisioning, which may lead to a reduction in waiting times for certain examinations and therapies. The demand for MRI and CT scans, as well as physiotherapy, will necessitate approval, with an electronic approval system scheduled for implementation by the year's end. The Medical Chamber will be consulted to explore if diagnostic tests can be reduced in certain areas as well.
Transportation costs will also be in the spotlight, as the number of transports has shot up by 10%. A single prescription fee (7.55 euros) will be charged for emergency transport, with double the fee levied for taxi rides, to deter convenience prescriptions in this area.
To cut costs, the ÖGK will engage directly with the medical profession, asserting that "everyone must make a fair contribution" during the tough years of 2025 and 2026. As a result, physician fees may not increase more than contributions, currently standing at roughly a 4% increase, which exceeds inflation. Chair McDonald emphasized that this move is not an imposition on physicians and aims to achieve this "ambitious goal" via negotiations.
Inter-state talks will also take place with the objective of joint financing in specific areas, like diabetes or pain centers.
The Austrian Medical Chamber has put forward a ten-point reform plan to tackle the issue. This plan underscores the importance of preserving the quality of patient care while leveraging synergies and efficiencies garnered from recent health fund mergers, rather than cutting services.
- The Austrian Health Insurance Fund (ÖGK) is attempting to reach a "zero deficit" budget, or a "black zero," by next year.
- This financial mission was initiated following extensive cost-cutting measures, decided upon in a recent supervisory board meeting and general assembly.
- MRI scans, CT scans, and physiotherapy will once again require approval.
- Patients will also be responsible for paying transportation costs going forward.
- Peter McDonald, the CEO of ÖGK, recently took over with a predicted deficit of 900 million euros.
- The deficit is projected to decrease to 250 million euros this year.
- The goal is to maintain premium healthcare services under the e-card system without causing undue burden on the insured.
- With the current measures in place, the deficit should drop from the estimated 900 million euros to 250 million euros this year.
- The "black zero" should be achieved by 2026, with contingency reserves established for ongoing demographic challenges.
- Long-term structural changes are in the works, but immediate steps are the priority.
- Raising health insurance contributions for pensioners is anticipated to provide some relief.
- Further relief is expected from political initiatives that have yet to be announced.
- The ÖGK will focus on internal savings, such as leaving second pension positions unfilled, reducing leased employees, and decreasing administrative building space.
- Investments will be reviewed for possible delay areas.
- Patients may still experience reductions in waiting times for certain examinations and therapies.
- An electronic approval system for MRI, CT scans, and physiotherapy will be implemented by the end of the year.
- The Medical Chamber will be consulted on the possibility of reducing diagnostic tests in certain areas.
- Transportation costs will be closely monitored, with a single prescription fee for emergency transport and double the fee for taxi rides.
- The ÖGK will work directly with the medical profession, emphasizing the need for "everyone to make a fair contribution."
- Physician fees may not increase more than contributions, currently at a 4% increase, exceeding inflation.
- The Austrian Medical Chamber has presented a ten-point reform plan to address the issue, emphasizing the preservation of patient care and efficiencies garnered from recent health fund mergers.
- Inter-state talks will take place for joint financing in specific areas, such as diabetes or pain centers.
- The health insurance fund will focus on workplace wellness, mental health, and chronic diseases to improve overall health and wellness.
- Fitness and exercise, skin care, and various therapies and treatments will play a significant role in this strategy.
- The manufacturing industry, mental health sector, and energy industry will also be impacted by the changes.
- The retail, transportation, and lifestyle sectors may experience changes due to shifting health care costs.
- The food and drink industry, personal finance, banking, data and cloud computing, technology, and home and garden sectors may be affected by these changes.
- Businesses, investors, and wealth management firms may need to adapt to these financial challenges.
- Political discussions on healthcare reform will continue, with education, self-development, and personal growth being essential factors.
- Big advances in healthcare, shopping, social media, entertainment, career development, and gambling trends will still be relevant during this period.
- Crime, justice, learning, responsible gambling, sports (including football and American football), and general news will continue to be topics of interest, while the gaming culture in cities like Las Vegas will evolve alongside these broader transformations.
