Sverdlovsk Oblast Insurance Companies Owe 500 Million Roubles to Hospitals

24.06.2009 — News

THE SVERDLOVSK OBLAST.

Half of the 18 insurance companies now operating in the Sverdlovsk Oblast are bound to withdraw from the market in the nearest future. They won't meet the intense competition and the complex financial situation in the regional compulsory medical insurance system.

To operate effectively in the sector of compulsory medical insurance, a company must insure at least 300 thousand people. The population of the Sverdlovsk oblast is about 4.3 million people. The number of insurance companies in the region is way ahead of all other Russian regions - including Moscow which has 8 insurance companies.

Half of the insurers in the Sverdlovsk Oblast don't meet this quantity criterion. In addition, the insurance companies' debt to hospitals for medical aid provided to the insured is increasing. At the moment the debt exceeds 500 million roubles. Medincom, the largest insurance company, owes 130 million roubles to hospitals. The reason behind the crisis is the lack of funds on the accounts of the territorial Compulsory Medical Insurance Fund, which is obliged to pay the invoices delivered by the insurers.

The experts told RusBusinessNews that certain insurance companies may soon be declared bankrupt. However, the regional government will have to bail out the larger ones using, among other sources, financial aid from the federal budget.