Funds of the Military Health Insurance Company utilized for the shown medical care
Press Release – August 10, 2009
From October 2008 to May 2009, auditors from the Supreme Audit Office (SAO) performed an audit of the Military Health Insurance Company of the Czech Republic (MHIC) and its management of the insurance premium that was collected under the rule of law from 2006 to 2007. Among the audited bodies were the headquarters and branch offices in Hradec Králové, Olomouc, Plzeň, and in Prague. After reallocating the finances, the MHIC’s income amounted over CZK 9 milliard in 2006 and over CZK 10 milliard in 2007.
Above all, health insurance companies should collect insurance payments, administer the financial resources, and provide funding of the insured medical. All collected money is considered as the fund’s entry and is liable to redistribution.
“The auditors confirmed that the MHIC utilized 95 % of the insurance income for providing of the medical care in 2006 and 90 % in 2007 in the due course. The medical care was reimbursed adequately and kept the pre-set prices“, said president of the SAO František Dohnal.
When entering agreements, MHIC sometimes violated respective implementing legislation to the Public Health Insurance Act. The contracts lacked terms that had been specified in the ordinance. For example, 26 from the 45 audited contracts with spa medical facilities lacked descriptions of the required equipments and staffing. In some cases, the MHIC defaulted using the correction ratio.
MHIC used its own informational system to revise the provided medical care as well as controlled the system’s outcome by own revising experts. But only a minimum of the medical facilities were actually visited by the revision experts. MHIC failed to approve the accomplished inventory of outstanding debts by the public health insurance as required by the Accounting Act for the year of 2006 and 2007 (within the audited period). Auditors also revealed quite a few insufficiencies of the legislation relating to the public health insurance.
The auditing operation was included into the 2008 Audit Plan of the SAO under No. 08/36. Eliška Kadaňová, Member of the SAO Board, controlled the operation and prepared the audit conclusion as well.
Radka Burketová
Press Speaker
Supreme Audit Office