The FINANCIAL — The leading Georgian insurance company Aldagi BCI, participating in a health insurance program for the socially vulnerable population reported that 55 340 beneficiaries obtained medical insurance from Aldagi BCI by exchanging state granted medical vouchers for medical insurance policies. 466 beneficiaries have already received necessary medical help, the cost of which amounts to GEL 273 962.
According to the Health and Social Programs Agency, 673 014 people in Georgia are below the poverty line, among them, 68 410 are from Tbilisi and 132 462 from the Imereti region.
On September 16, the Health and Social Programs Agency finished the issuance of insurance vouchers to Tbilisi and Imereti populations below the poverty threshold, registered in a database for socially unsafe families before July 1, 2007. The insurance voucher enables these people to obtain a medical insurance policy from one of four insurance companies taking part in the program, Aldagi, GPI Holding, Irao, and Peoples Insurance. The insurance companies receive GEL 7.2 from the state budget for every insured beneficiary.
As Vakhtang Surguladze, Head of HeSPA, stated, 27 146 vouchers were issued in Tbilisi and 47 975 in the Imereti region. Approximately 50 000 beneficiaries have not yet exchanged their vouchers for medical insurance policies. The vouchers of those who will not choose an insurance company to get medical insurance policy from by October 31, will then be proportionally distributed to all four insurance companies.
“Since this is a pilot program, it has only been put into operation in Tbilisi and the region of Imereti. From 2008 the program will be implemented all over Georgia and the number will be increased accordingly,” said Surguladze.
According to Nikoloz Gamkrelidze, director of BCI Clinic, Health Project of Aldagi BCI Insurance, operating two diagnostic centres in Tbilisi, the company is already getting prepared for the full execution of the program in 2008 and an increase of the number of beneficiaries to 1 000 000 by expanding the network in the regions, recruiting and training personnel for effective risk management, and establishing regional branches for better local coordination and effective administration.
“We do not expect any profit during the first year of the project. On the contrary, we might even experience loss before the full expansion of the program all over Georgia, but our company is financially strong and sound enough to withstand this challenge, given that we hold 36.1% of the insurance market in Georgia, in addition to having the longest experience in this business,” said Gamkrelidze.
BCI Clinic plans to launch a new diagnostic centre by the end of 2007 in Batumi. Expected turnover of the BCI Clinic amounts to GEL 1 200 000 in 2007, while in 2008 the company revenue is expected to reach GEL 2 100 000.
The insurance premium of Aldagi BCI is 17 588 041 in 2007.
In 2006 GPI Holding was the only insurance company administering the Municipal Health Insurance program for the socially vulnerable population of Tbilisi financed by the Mayors Office of Tbilisi.
The number of insured through this program in 2006 approximated 50 000. 77 000 cases were reimbursed as reported by GPIH.
According to Sopho Gasitashvili, head of GPIH Health and Life Insurance Department, the Health Insurance Program for the socially vulnerable population will improve the social background of the population, as well as the medical condition of the beneficiaries, insure the effective administration of the state budget, financial transparency of medical establishments, and an improvement of medical service quality.
“The initial problems of the program involved an inadequate attitude towards the meaning of insurance, ignorance of medical stuff, and a non-existence of general standards of medical treatment, however now the picture is different,” said Gasitashvili.
Established in 2001 as the first non-state pension fund, GPIH is a member of the Vienna insurance group. Start-up capital of the company makes GEL 3 million.
All four insurance companies offer additional benefits and services for beneficiaries who choose to exchange their voucher for medical insurance policy.
“Efficient implementation of this program is in the best interest of both state and insurance companies. We acknowledge that participation in this program is a high risk strategy for insurance companies, therefore risk management has to be extremely effective. Successful execution of this sensitive program will result in expansion of the insurance market in Georgia, peoples trust in the insurance system as well as a welfare state,” declared George Tsereteli, Chairman of the Committee on Health and Social Affairs.
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