Ministry proposes change in farmers’ contributions to guarantee NFZ receipts

2010-03-10

The Health Ministry has sent out for consultation a draft ordinance that alters the algorithm whereby farmers’ health insurance contributions are calculated, a change that is expected to boost the revenues of the National Health Fund (NFZ). It is to take effect as of next year.
Under the amended rules, the level of the contributions – which are transferred to the NFZ from the Farmers’ Social Insurance Fund (KRUS) – would be tied to the minimum wage and to the area of arable land on a given farm, rather than to rye prices as now. They would be set as 9% of the sum calculated by multiplying 25% of the minimum wage (PLN 329, or €84 at the moment) multiplied by the number of hectares of arable land on a farm. That would make the receipts more stable and predictable, and prevent the kind of situation that occurred last year, when a sharp drop in rye prices triggered a PLN 700m (€179m) shortfall in projected receipts, compounding the NFZ’s financial woes.
According to the ministry’s estimates, if the change was introduced already this year, the Fund would receive an extra PLN 763m (€196m).