Indonesian Political, Business & Finance News

Askes asks govt for Rp 435b in subsidies

| Source: JP

Askes asks govt for Rp 435b in subsidies

JAKARTA (JP): State-owned health insurance company PT Askes is
asking the government to fork out some Rp 36 billion a month or
Rp 435 billion a year in subsidies for the company's health
services.

The amount is about equal to the amount received from the
premiums paid by the 13.8 million civil servants and their
families.

"What we get (from the premiums) isn't enough to cover health
services for our members. (But) Increasing the premium will
burden our members, so we are appealing to the government
instead," PT Askes president Orie Andari Sutadji told reporters.

The company celebrated its 32nd anniversary on Monday.

Each civil servant is obligated to pay 2 percent of his or her
basic wage for family coverage in the insurance plan.

Beside civil servants, there are also some 719,000 voluntary
members.

Askes operational director I Gede Subawa said the government
in the past had not subsidized insurance premiums. Subsidies were
given to hospitals where health services were provided.

Therefore, Askes has been totally depended on the insurance
premiums paid by its members to cover expenses, Gede said. "Even
hospitals have complained that the subsidy from the government is
too small," he added.

Askes' appeal in many respects was prompted by the
introduction of Law No. 43/1999 which stipulates that the
government will contribute to health insurance premiums and other
subsidies for civil servants.

"The government regulation (to approve the subsidy) is still
in process, but we're positive that the government will grant the
funds," Gede said.

"People think that with that many members, we have got a lot
of money. That's true, but it's not enough. Especially during a
monetary crisis such as this," said Orie.

According to Orie, 87 percent of the funds received goes
toward paying for health services.

She pointed out that medication for a person with a chronic
disease for example, could cost a minimum of Rp 300,000 per
month.

"Last year, we spent Rp 31 billion on 2,880 kidney failure
patients who needed hemodialysis. This year, we predict it will
increase to Rp 44 billion with the same number of patients, due
to currency fluctuations," Orie said.

The insurance covers most medication costs with some
requisites.

Prescribed drugs should be listed in a register of drugs
drafted by a team of pharmaceutical companies and doctors from
several hospitals in Jakarta.

There are about 860 items on the current list, complete with
the prices of the drugs.

Askes also claims to cover almost all hospital expenses.

"Patients only pay a little amount called the 'hospital
control fee' which differs from hospital to hospital," said Gede.

Despite the tight money situation, Orie maintains that the
company is far from financially ruin.

"God willing, no. That's why we need the government's help,"
Orie said. "We also have to get more members".

Orie also refuted suggestions that the procedure of the
insurance service is complicated and too bureaucratic.

"It's not complicated, really. It's just that with millions of
members, we have to go through some procedures," she said. (09)

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