Published On: Thu, Dec 27th, 2012

Value of AVBZ-fund dropped with 76 million

WILLEMSTAD – The value of the Special Medical Insurance (AVBZ) was over 243 million guilders per 31-12-2011, which is approx. 76 million guilders less than 2010. This appears form the annual accounts of the fund which were published recently by BZV, entrusted with the management. This is partly due to the agreements made with the distribution of the estate after 10-10-’10. Independent accountant Deloitte was unable to give an assessment on the reliability of the annual accounts.With the introduction of the new political structure, the fund was subdivided into the ‘new’ countries within the Caribbean part of the Kingdom per 10-10-’10. As a result the annual accounts of 2011 run from October 10, 2010 up to and including December 31, 2011.

Due to the division of the estate the amount of 20 million guilders invested with the MCB for investments in new construction projects was used to repay debts of the mortgage loans. The institutions still owe these amounts to the BZV.

Accountants firm Deloitte was unable to obtain sufficient and adequate control information to give an assessment. The BVZ has a claim of over 84 million guilders on the country Curaçao. This claim represents 35 percent of the balance total. Correspondence between the AVBZ-fund and the country reveals that the country does not admit this claim. As a result Deloitte was unable to determine if the claim is correct and if any corrections are necessary. The claim is built up from the subsidy in the period 1997-2006, which was not paid in conformity with the law.

The burdens in the financial year amounted to 95,846,316 guilders. The construction work on relief centers for youngsters with a minor intellectual limitation and behavioral problems began in 2011. The official opening of these centers in Emmastad at Fundashon Verriet was held in June this year. In total, 89,303,069 guilders was paid to the medical institutions from the AVBZ-fund. Insured persons in a medical institution who pay their allowance or AOV-pension to the AVBZ-fund receive 75 guilders on spending money per month. Up to and including December 31, 2011 the total amount paid on spending money was 846,226 guilders. The amount in 2010 (minus the last two months) was 247,850 guilders. More money was also spent on artificial aids and auxiliaries. This was 2,818,703 guilders in 2011 and 2,428,200 guilders in 2010.

The costs from the AVBZ increased drastically the past years with the expansion of AVBZ-medical care with psycho-geriatric diseases, sensual handicapped persons, autism, and rehabilitation services. Furthermore, the ageing population and the steep decline of the volunteer aid seriously affect the demand for the AVBZ. The upholding and improving of the quality of the medical care also involves higher costs.

Expectations are that with the introduction of a basic medical insurance within short the margins between, cure, care and welfare will be defined, which will lead to cost control in the AVBZ. There is a strong inclination to call on AVBZ-care due to the indistinct division, while there’s a need for cover from welfare services.

On the one hand the fund is financed by the working population through an income-dependent premium and on the other hand the country pays the AVBZ a contribution. The country’s contribution in the period 10-10-201 up to and including 31-12-2011 was 18,120,971 guilders.

The AVBZ is a national insurance against risks that cannot be insured elsewhere and for which no regulations exist. It regards the nursing, care and treatment of chronically sick patients with a physical, intellectual, visual or auditive handicap and those in psychiatric care. The AVBZ-fund falls under the extreme supervision of the Central Bank of Curaçao and St. Maarten.

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