May 5th, 2008

Socialist party to withdraw health insurance law

The Socialist Party will not amend the law on health insurance reforms, but withdraw it entirely, liberal daily Népszava reports today.

MSZP leaders fear that their new plans to establish seven state-owned funds in seven regions will not be supported by the majority in Parliament, which is likely, based on the viewpoints of opposition parties including SZDSZ, the Socialists’ former coalition partner.

It is not known whether the party will submit its own proposal after withdrawal of the law.

Based on the law currently in effect, 22 health funds have been established in which private businesses would have been allowed a minority stake. The party said it wants to withdraw the law – which led to the coalition crisis and in part caused the split – because results of the March 9 referendum led to uncertainty among potential investors.

The party also expects another referendum to be held in the fall to block the multi-insurer system, but it is not known whether its results would apply to the current model.

The MSZP is worried that their new proposal to establish seven non-profit, state-owned health funds – while maintaining roughly 90% of the text of the current law – will not be supported by the majority in Parliament.

The liberal SZDSZ will certainly not support the omission of private capital from the plans, while Fidesz has said it agrees with decentralization in principle, as long as health insurance is kept in state hands. However, it has stated that the basic concept of the law is wrong. The Christian Democrats are not going to support a law Fidesz does not back.

The smaller conservative party, MDF has said it does not agree with decentralization of health care at all.

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