Health Insurance Fund of Republika Srpska seeks a loan of 100 million KM

(Patria) - The Government of Republika Srpska has approved a new borrowing of 100 million marks for the Health Insurance Fund of RS.

At the end of last year, the HIF owed banks about 178 million marks.

The Fund says it is facing lower inflows of funds compared to planned, which could affect the financial stability of the healthcare system.

They state that since the beginning of this year, the expected effects of salary and minimum wage increases have not materialized, while on the other hand, insured persons' rights have significantly increased.

“Costs for financing healthcare are continuously rising, and in 2023 alone, they increased by 118 million KM compared to 2022. The largest increase in costs was recorded in the financing of hospital and primary healthcare, drug costs, and for the refund of net salary during sick leave,” says the HIF RS.

They explain that the rights of pregnant women and cancer patients have been increased, with salaries paid at 100 percent, and so on.

They also state that the negative trend in the ratio of revenues and expenditures is also a consequence of the reduction in the health contribution rate from 12 to 10.2 percent, which is one of the causes of the decline in fund inflows, resulting in annual losses of around 111 million KM.

One of the biggest problems, they add, remains the debts for contributions, which amount to 177 million KM.

“If there were no debts to the Fund, we would not need to take out loans. With the planned loan, the total annual loan repayment amount will be 6.43 percent of regularly realized revenues, which is less than the allowed limit of 18 percent of regular revenues,” says the HIF.

They point out that over 80 million KM in loans have been repaid in the past two years, while around 51 million KM will be repaid this year.

The HIF claims that the new planned loan will not jeopardize their operations and adds that a public procurement procedure for selecting the most favorable bank will be conducted soon.

Otherwise, the HIF RS continuously takes out loans every year.

Their debt at the end of last year was 178 million, which was about 1.7 million less than the year before.

The HIF took out its largest loan a few years ago from Unicredit bank in the amount of 133 million marks. This loan was used, among other things, for refinancing obligations and introducing IZIS, writes