Taxes On Pensions To Fund Medicine, Hospitals – Romania’s Health Min

Romania’s Health Minister Atilla Cseke said Tuesday that the 1.4 billion lei (EUR1=RON4.3006) to be collected from social health insurance contributions on pensions will be used to cover the costs of compensated medicine and finance hospitals.

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The minister said the draft health insurance budget sets how the money will be distributed, adding that RON1 billion will be used to cover the cost of compensated medicine and RON400 million will be allotted to hospitals.

Cseke said Monday evening that the Government decided that retirees with monthly pensions higher than RON740 and people who took part in the 1989 revolution, except those who were injured, will pay a 5.5% contribution to the social health insurance system starting January 2011.

According to the minister, the Government estimates to collect RON1.4 billion annually after implementing the measure.

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