Published On: Wed, Apr 24th, 2013

Cost Social Insurance too high

svb buildingWILLEMSTAD - The Social Insurance Bank (SVB) - led by director Philip Martis - must now turn itself to annual cost reduction.

To have control once again of the health care expenses of Curaçao, the Government must not only save health care institutions and providers, but the SVB should also gain control of its own high management expenses.

To get grip on the rising costs incurred by the SVB, an annual budget  should be submitted to the Department of Finance for review, pending the establishment of a Health Care Authority. And to better control labor costs, the collective employer/employee agreement (CAO) of the SVB should be studied and evaluated.

After the merger with the BZV (Insurance Services Office), which was annexed by the SVB, there were no positive effects measured on the scale expansion at the SVB so far. This, even though the work scope of the SVB became less by over two tenths after the constitutional reform of 10-10 - '10, when the islands of the Netherlands Antilles were split in Curacao, the Sint Maarten and the BES islands (Bonaire, Sint Eustatius and Saba, which has since been an integral part of the Netherlands).

To reduce costs, the SVB, according to the advice, must also increase the control on the social insurance so to prevent abuse. It also appears that the proposed savings in health care, as decided by the Cabinet on December 5, 2012 ( by the interim government Betrian in which Jose Jardim was Minister of Finance), have not given any results yet.

Meanwhile, the government expenditures are increasing, with the exception of medicines.

Finance warns that if the basic health insurance fund (bvz) closes a year with a financial deficit, then the premium should be increased in the next year. Given the sharp increase in the burden on the businesses due to the recent introduction of the bvz, the adjustment of the retirement pension and the premium, a further premium increase is unacceptable according to the Ministry of Finance.

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