Bulgaria’s National Health Insurance Fund (NHIF) will formally be stripped off its monopoly starting 2009, whereas real competition on the health insurance market begin in 2010, the ruling coalition decided at its May 11 meeting in Bansko.

The ruling coalition also decided to raise the health insurance contributions from six to eight per cent of gross salaries as of January 1 2009. The motion is set to generate an extra one billion leva. The ruling coalition said, however, that the hike in health insurance contributions would not lead to an increase in the overall tax burden.

The liberalisation of the health insurance market will take place on the principle of solidarity and maximum protection of all social groups at risk, the Government's press office said. The reform will include the creation of a Guarantee and Solidarity Fund, which will ensure financial stability and access to health care for all citizens, according to the Cabinet's statement.

Furthermore, it was agreed that private health funds would have to acquire two licences before starting operations. The first licence will attest eligibility to perform such activities. Private funds will have to have 10 million leva in capital, to prove the origin of the money and to ensure full transparency of their shareholding structure. The second licence would be awarded only to entities with at least 100 000 clients. Only on covering this last requirement, they would be allowed to vie for management of two percentage points from health insurance revenues.

As of 2010, private funds will be entitled to compete for the full health insurance contributions and a condition is to have at least 300 000 clients. The ruling coalition also hailed the start of hospitals’ privatisation and considered the waiver of the visitation fee at hospitals.

The meeting of the coalition council is also attended by all Cabinet ministers, Parliament committee heads and parliamentary floor leaders of the Bulgarian Socialist Party, National Movement for Stability and Progress and Movement for Rights and Freedoms.