News in health insurance for foreigners
The last amendment to the Foreigners’ Residence Act has brought significant changes. Some of them, such as the abolition of the monopoly of the general health insurance company (VZP) have already taken place. What else has changed, and what will the amendment bring from 1 January 2024?
Expanding the list of commercial insurance providers
Under the Foreigners’ Residence Act, citizens of non-EU countries residing in the Czech Republic for more than 90 days are obliged to have valid comprehensive health insurance for the entire duration of their stay. Since the 2021 amendment to the Foreigners’ Residence Act, only the VZP health insurance company has been authorised to arrange this type of insurance. This factually and legally created a monopoly for the provision of comprehensive health insurance for foreigners. With the amendment, this situation will now change: starting from 20 September 2023, applicants for long-term visas and long-term residence permits can arrange comprehensive health insurance with any insurance company that is licensed to provide this type of insurance. After two years, VZP's monopoly, originally intended for a five-year period, has come to an end.
Foreign nationals who have previously taken out insurance with VZP may terminate it within three months of the effective date of the amendment. However, this does not give rise to a right to a refund of one-off premiums already paid.
The end of the monopoly should level the conditions on the insurance market, as foreigners will be able to choose an insurance company based on their own needs and preferences. At the same time, it means a return to compliance with EU and constitutional law. The resumed competition may also lower insurance prices.
Increase in insurance benefit limits
The insurance benefit limit has also been adjusted. The original limit per insured event set at EUR 60,000 has been increased to EUR 400,000 without an insured's deductible. Under the law, insurance companies have the right (although not the obligation) to increase premiums even for insurance contracts already concluded. According to VZP's statement, they will not resort to this step and will leave the premiums for already concluded contracts at the original level.
Changes from 1 January 2024
From 1 January 2024, access to insurance shall change for foreigners under 18 years of age residing in the Czech Republic based on valid long-term residence permits. They will have to become participants in public health insurance, without the option to replace it with commercial insurance. If the validity of their existing commercial insurance ends after 1 January 2024, it will not be necessary to cancel such insurance. An under-age foreign national shall become a participant in public health insurance on the day following the termination of the current insurance and will not be able to extend the validity of their commercial insurance.
The foreign national must notify the selected public health insurance company of their transition to public insurance no later than eight days before the end of their commercial insurance. Their participation in public health insurance shall then terminate once they turn of age or upon the expiry of their long-term residence permit. After reaching the age of majority, foreigners will thus have to take out private health insurance covering comprehensive healthcare.
Another important novelty will be the health insurance register, which should be established within a year of the effective date of the amendment and whose purpose is to ensure greater transparency and better health insurance coverage of foreigners. The founder will be the Czech Insurers' Bureau.