In Hungary, private health funds have yet to catch on as they have in western countries, especially the United States. While citizens may complain about the lack of personal care and long waits in the doctor’s office, Hungarians still choose the “free” OEP plan. However, big changes to the public health fund could push people to the private sector.

Amongst the many reforms planned to the health fund, officials want to alter the way drug subsidizing. The OEP must make these reforms in wake of much bad press, often for matters to which they have no control such as the shortage of flu vaccines.

From July 1st, Hungary plans on raising taxes to pharmaceutical companies to 20% from the previous 12%. The goal of the plan is to reduce the health fund over the course of the next three years. Under this plan, the state only supports expensive drugs if they are effective in therapy. Secretary for Health Miklos Szocska said that this plan will reduce burdens on patients while making pharmaceutical companies more responsible.

Some of the criticisms that this plan has evoked is that it puts too much pressure on doctors who will have to show the effectiveness of treatments. The plan also does not address a problem of over-prescription of medicines in Hungary. Some opponents argue that a doctor’s fee would help reduce the health fund deficit as well as the number of unnecessary prescriptions.
Even with the reforms to the public system, it is unlikely that Hungary will move towards private health fund investments. Even many expatriates from Hungary are reluctant to invest in a private health fund. Plus, there is always the treat that the Hungarian government would do the same thing to private health funds as they did to the private retirement funds and basically coerce citizens to use their savings for covering the national debt.

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