VietNamNet Bridge – The country's Health Insurance Fund ran a surplus in 2010 after years of being in deficit, but deputy general director of Viet Nam Social Insurance Nguyen Minh Thao told Thoi bao Kinh te Viet Nam (Vietnam Economic Times) the fund could easily slip back into the red.

Is the fact that the Health Insurance Fund is in the black a good sign?

I can say that the interests of those with health insurance are safeguarded. The fund has been used to pay for more than 160 cutting edge medical procedures. It has also covered the cost of treating congenital malformations and the rehabilitation of traffic accident victims. Many patients have benefited from the fund, which has allowed them to access the best medical services at district or provincial level.

Last year, there were about 106 million payments made by the fund for health examinations and treatment, worth about VND19 trillion ($950 million). On average, each insured person receives 2.1 health examinations and treatment a year. The number of patients accessing the fund increased by 16 per cent last year against 2009, while spending was 25 per cent higher.

How will the surplus of VND3.5 trillion (US$175 million) be used to improve the quality of health care services?

Last year's surplus will go towards the Retirement Fund because the Health Insurance Fund used to borrow money from the Retirement Fund when it was in deficit. A part of the rest will be used to purchase medical equipment for hospitals, with priority given to clinics and hospitals in mountainous and remote areas – with the Prime Minister's approval. A number of provinces need to buy high-tech medical equipment to improve the quality of health examinations and treatment. A part of the surplus will also go towards the standby health insurance fund. It is an imperative that funds be made available in case of natural calamities and epidemics.

As an aside, some experts have argued that a ceiling should be put on the maximum contribution near-poor households and those households whose members contract chronic diseases need to make. It has been suggested that the rate should be equal to no more than six months of their base annual salary if the Health Insurance Fund is in surplus.

The cost of health care is escalating, as is the price of medicine. Are you worried that the fund will be overstretched this year?

There are two issues that are likely to lead to a fund imbalance over the next few years. First, the cost of health insurance cards for farmers, forestry workers and fishermen is prohibitively high. Many near-poor households are not able to buy health insurance cards even though the State pays 50 per cent or even 80 per cent of the cost.

It was made compulsory for pupils and students to buy health insurance cards last year. Even so, just 60 per cent have done so.

Second, the price of some health care services will go up. This will obviously affect the fund.

What should the focus be for the Viet Nam Social Insurance fund in the future?

We will continue to encourage cities and provinces to offer convenient and cost-effective primary health care. The fund will also work with the Ministry of Health to reduce administrative procedures for patients and make payments between hospitals and patients more transparent.

VietNamNet/Viet Nam News