The Vietnam Social Insurance (VSI) wrote about VND 150 Billion (US$ 9.3 Million) over budget from January to April 2008, says Hoang Kien Thiet.
The President of Voluntary Health Insurance Division, VSI, Hoang Kien Thiet, said that from January to April 2008, the Vietnam Social Insurance (VSI) went VND 150 Billion (US$ 9.3 Million) over budget, as reported in the news published by vietnamnet.
VSI has revealed that from January to March 2008 (Q1 2008), about 1.6 Million Vietnamese bought the health insurance, which is more than the total of the previous year (2007). Moreover, the extra spending is being sent to Ho Chi Minh City (HCM City) and Hanoi, where the SVI sent nearly VND 116 Billion ($7.2 Million).
The purchase of government’s voluntary health insurance by a large number of people is identified as the main reason for higher spending on health insurance from January to April 2008 in the country. Also, expensive imported medicine and unnecessary medical services is increasing the government expenses on medical services and medicines.
Moreover, poor healthcare services in the country is one of the major problems faced by the government and to resolve this issue, Vietnamese government need to make a firm plan to improve and increase the medical services and raise the budget for health insurance industry. The expenses of government are also increasing due to the regulations which are forcing a large number of people to purchase health insurance and improve management by withdrawing unnecessary medical services.
Further, to attain universal health insurance coverage in near future, the country is adopting adequate corrective measures in health financing. Also, there is a compulsory health insurance program in Vietnam for its citizens but presently, the Vietnamese government is introducing various new insurance policies for the emigrants, which require health insurance.
A Research Analyst at RNCOS said, “Due to the issue of immediate cash payment, the health sector of the country is going through losses. However, because of the overall weak framework of medical services, any foreign resident staying in Vietnam must have an international health insurance with reimbursement and emergency migration benefits. Thus, international health insurance will help not only in preventing the problem of poor medical services but also in avoiding immediate cash payment to hospitals.”
Related Market Research Reports:
Indian Insurance Industry Forecast (2007-2009)
Opportunities in Middle East Insurance Market
China Insurance Sector till 2010
