MPs told Gesy funding secure despite system risks
The national healthcare system (Gesy) appears to be secure from a funding aspect, MPs heard on Thursday.
The House health committee was discussing the 2026 budget of the Health Insurance Organisation (HIO) which runs Gesy.
This year’s balance sheet comes to €2.19 billion.
Speaking to the media later, Disy MP Savia Orphanidou said they got assurances from the head of the HIO that the organisation has a €700 million cash buffer.
However, she and other lawmakers urged the HIO to weed out inefficiency and abuses in the system – highlighted in a recent ‘risk report’.
That report listed 24 risks to Gesy.
One potential risk related to funding, although the report found that the cash reserve of €700 million was satisfactory. The amount is sufficient to cover needs for about four-and-a-half months – assuming no contributions –compared to the internationally accepted threshold of three months.
According to an actuarial report, Gesy will continue to post robust cash reserves up until the year 2032.
Another risk identified related to the payment of compensation to Gesy healthcare providers – chiefly personal doctors – for beneficiaries who may not be residing in the Republic.
All persons with their usual residence in Cyprus and contributing to Gesy via their salaries are beneficiaries.
The compensation to personal doctors is calculated based on how many patients are enrolled with them.
However, the report identified a blind spot – the HIO does not have updated data on persons departing Cyprus and who therefore should no longer be Gesy beneficiaries.
In addition, the software system used by the HIO is problematic – it is too slow to process prescriptions, often leaving patients in the lurch.
On this, the HIO told MPs that as of May it intends to take over the running of the IT system itself.
Up until now, the system was run by a subcontractor. The contract expires in May.