PS Asks European Commission to Review Union-Dovera Health-insurer Deal (2)

Bratislava, 29 July (TASR) - Opposition Progressive Slovakia (PS) MEP Veronika Cifrova Ostrihonova and MP Oskar Dvorak (PS) have asked the European Commission (EC) to examine the proposed acquisition of private health-insurer Union by private health-insurer Dovera, arguing that the planned merger poses a significant risk to Slovakia's public health-insurance system. "As politicians working on health-care policy at both the European and national levels, we want to highlight potential concerns regarding the impact of this transaction on competition, patient choice and the functioning of Slovakia's public health-insurance system. We're drawing the Commission's attention to a situation in Slovakia where a merger would undermine the market, leaving people with only two insurers instead of three," said Dvorak, according to a statement provided to TASR by PS media representative Tereza Mikacova. Cifrova Ostrihonova accentuated that PS isn't questioning the right of companies to carry out legitimate business transactions, but she argued that Slovakia's situation is unique. "The Penta financial group owns networks of hospitals, outpatient clinics and pharmacies, and it's moving towards an almost 50-percent share of the health-insurance market. We're therefore concerned about how this merger will affect the public health-insurance system. Patients' interests must come before the interests of financial groups," she said. In their letter, the politicians ask the European Commission to assess carefully whether reducing the number of health-insurers in Slovakia from three to two could have a negative impact on competition in system, whether such market concentration could create further barriers to future entrants, and whether the increased market power of the two remaining insurers could affect their relationships with health-care providers and, ultimately, patients. "We're also asking the Commission to take into account that health insurance in Slovakia is compulsory and that how it operates has a direct impact on patients. We want to know how it will protect their rights and ensure that sufficient competition is maintained," the MEP added. Meanwhile, Union has pointed to a ruling by the Court of Justice of the European Union stating that Slovak health-insurers aren't considered businesses and are therefore not subject to EU competition rules. "That ruling is legally binding and final. We'd like to point out that we initiated that dispute because state-owned insurer VsZP received unilateral financial support and, following that ruling, repeatedly obtained further substantial capital injections. Such conditions clearly cannot be regarded as fair competition. If this principle applied in cases of such clearly anti-competitive conduct, it must also apply today," Union spokesperson Beata Dupalova Ksenzsighova told TASR. She added that, in order to remove any doubt, the insurers plan to approach the European Commission in the coming days to resolve the jurisdictional issue. "We will, of course, respect the European Commission's decision," she said. Dovera spokesperson Matej Stepiansky told TASR that the health-insurers have been in ongoing contact with the European Commission. "A team has been assigned to assess our request. The substantial submission will be sent in the next few days," he said, adding that an application will also soon be filed with Slovakia's Healthcare Supervisory Authority (UDZS). According to Stepiansky, Dovera understands the concerns expressed by part of the public and respects politicians' right to turn to European institutions. Achmea B.V., Union's shareholder, and Dovera, a member of the Penta investment group, have signed a share transfer agreement under which Union would be transferred to Dovera in order to create a stronger foundation for the further development of health insurance in Slovakia. Once all necessary approvals have been obtained, Union is expected to merge with Dovera. In a response to TASR, the European Commission stated that it hadn't been officially notified of this transaction. "If the transaction constitutes a merger and has a European dimension, it's always up to the companies to notify the Commission," it added. NOTE: This story has been extended to include the final paragraph. mf/df/am