EUR 250 deductibility for voluntary health insurance
 The draft amendment to the Fiscal Code proposed by the Ministry of
Economy and Finances (MEF), which provides a deductibility increase
from EUR 200 to EUR 250, applied to insurance premiums paid for voluntary
health, insurance was approved yesterday by the Government.
If it will be adopted, the Emergency Ordinance which will change the
Tax Code will begin to take effect from 1 January 2009.
According to the MEF project, to the initial costs of voluntary health insurance will be applied a limited deductibility in an amount representing the equivalent in RON of EUR 250 per year for each participant.
The increase of the deductibility will stimulate demand for voluntary health insurance, especially in the case of companies that offer such a product in the package for employees of non-wage benefits.
Interventions made in order to increase corporate interest to purchase these products would bring major benefits to the State, through the existence of a healthy competition and transfer services to the private insurance sector. So, companies and employees will benefit from an increased level of service quality and satisfaction with a degree of better retention and, last but not least, insurers will grow upon the markets potential.
However, the real potential for the development of the health insurance market could be exploited only in terms of tax incentives granted to all potential customers.
The market of private health insurance recorded in the first half of the year, a nominal decline in euro over 15.7%, from EUR 4.10 million in S1/2007 to EUR 3.46 million (12 7 million USD), this class share in total subscriptions dropping from 0.38% to 0.29%.
Also, gross allowances paid for health insurance had a negative evolution in nominal euro 21.42%, decreasing to EUR 0.98 million after the first half of the year, from EUR 1.22 million.
Development perspectives are very good, but the specialists estimate the market of private health insurance could reach EUR 20 million over the next five years and approximately 100 million EUR over another ten.
Author: Andreea IONETE
on 09.10.2008
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