KDH Warns of Risks Entailed by Merger of Health-Insurers Union and Dovera

Bratislava, 21 July (TASR) - The opposition Christian Democratic Movement (KDH) has warned of the risks in connection with the merger of private health-insurers Union and Dovera, drawing the European Commission's (EC) attention to an unprecedented vertical concentration in Slovakia's health care, with a single business group managing mandatory public health-insurance levies while at the same time owning a large proportion of hospitals, outpatient clinics, pharmacies and medicine distribution, the party's MP Peter Stachura told a press conference on Tuesday. KDH has also called on the Health-care Supervisory Office (UDZS) not to decide on an ownership change before the EC becomes familiar with the submission. "We're not just pointing to the acquisition of Union, we're pointing to the system. Today, Penta [investment group] doesn't only control a health-insurance company, it controls an ever-larger share of the entire health-care chain, from the management of mandatory health-insurance levies through operating its own hospitals and outpatient clinics all the way to pharmacies and the distribution of medicines," said Stachura. He went on to say that this creates an environment in which a single group not only decides how funds are distributed, but is also able to channel them through its own network of health-care facilities. "And this is what we want the EC to be warned about," added Stachura, noting that for this reason, KDH has also urged UDZS to wait with its decision on the change of ownership, as it will have a long-term impact on the entire public health-insurance system. "Health-insurance companies don't manage their own money. They manage people's mandatory health-insurance levies. Therefore, in every major change concerning ownership structure, protecting patients and the public interest must come first. The new situation deserves thorough scrutiny because its consequences could affect the functioning of the entire health-care system in Slovakia," stressed Stachura. Achmea B.V., stakeholder of health-insurer Union, and health-insurance company Dovera, a member of the Penta investment group, have signed a share-transfer agreement under which Union will be acquired by Dovera. The acquisition of the stake in Union will be financed by Dovera's shareholder and won't affect the funds allocated for reimbursing health-care fees. The plan is to merge Union with Dovera after obtaining the required approvals. The heads of both health-insurance companies, Martin Kultan (Dovera) and Michal Spanar (Union), said that the relevant authorities could issue their opinions within a few months, but they don't believe that there are any obstacles to the merger. They also claimed not to see any reason why this should lead to reduced competition on the market. jrg/df