No more private healthcare insurance for SGOs

The House on Thursday passed legislation that bars all semi-governmental bodies from paying into private health insurance, since employees in these organisations already benefit from the national health system or Gesy.

The change will take effect at the end of the year, giving the SGOs time to transition.

MPs said that upon the expiry of current health insurance policies held by SGOs, they cannot be renewed.

The amendment read: “No expenditure shall be carried out for the purpose of covering the employer’s contribution to a private insurance company regarding healthcare coverage of employees in the organisation, on the expiry of existing contractual obligations.”

Speaking on the House floor, MP Giorgos Loukaides of main opposition Akel spoke of the paradox brought to their attention earlier by the auditor-general – namely, that despite the existence of Gesy, SGOs still retain the right to pay into private health insurance policies.

And this despite the fact that the government allocates funds to these same SGOs for healthcare coverage under Gesy.

This state of affairs “undermines Gesy,” Loukaides said.

Likewise, Diko MP Pavlos Mylonas said the change would bring an end to inequality among members of the public – the fact that until now the state has been contributing to the private insurance of “some very privileged individuals.”

He added: “It’s unacceptable that payments are made for additional healthcare services for government employees, who receive better wages than the average person, while at the same time – and by law – the state contributes into their account for the purposes of Gesy.”

The amendment in question was tabled verbally at the House while it was in session. Parliament was voting specifically on the budgets of a number of SGOs, on condition that these particular SGOs no longer enjoyed private healthcare insurance in addition to Gesy coverage.

However, during the debate MPs recalled that the budgets of some other SGOs had already passed – but without the condition of ending their private health insurance.

To ensure consistency going forward, the verbal amendment expanded the change to include all SGOs – no more private healthcare as of the end of 2023.

The SGOs whose budgets the House approved on Thursday were: the Digital Security Authority; the Office of the Commissioner for Electronic Communications and Postal Regulation; the Agricultural Payments Organisation; the Land Development Corporation; the University of Cyprus; the University of Technology (Tepak); the Open University; and the Youth Board of Cyprus.