The decision of the previous government to adopt a law depriving health insurers of their right to profit could prove a costly one, points out the Health Policy Institute in its monthly publication.
After the law was introduced, the enraged private health insurers said they would take the country to court over the issue, which is what insurers Dovera and Union did. The costs of the state’s defence so far amass to EUR 11 million, which ironically is more than the total profit generated by all private health insurers in 2009.
Based on the protection of investments, three private health insurers (Apollo, Dovera, and Union) are now wrangling with the Slovak Republic in international arbitration proceedings, demanding compensation for their lost profit and business caused by the Fico government’s 2008 revision to the Act on Health Insurance Companies.
Legal representation costs to date according to the Ministry of Finance:
Insurer 2009 2010
|ZP Union (EUREKO)||5 517 301.39 €||2 968 665.61€|
|ZP Dôvera (HICEE)||937 884.98 €||1 869 079.30 €|