On Friday, the supervisory board of the Health Insurance Fund approved the institution's draft budget for next year, which will be taken to state budget negotiations.

The goal for the coming years is to ensure that the budget moves gradually toward balance. According to current projections, the Health Insurance Fund's deficit will decrease by nearly half next year, and balance will be achieved by 2030.

Next year, the Health Insurance Fund expects its expenditures to reach nearly €2.7 billion. Investments across the entire healthcare system will increase by approximately €90 million. To reduce the deficit, a target was set to bring it down from this year's roughly €90 million to €44 million.

The chair of the Health Insurance Fund's supervisory board, Minister of Social Affairs Karmen Joller, said that the goal for the coming years is to restore the fund's financial sustainability while maintaining access to essential services for people.

"My goal is to pull the Health Insurance Fund out of its financial crisis and put the budget back on a sustainable path," Joller said, adding that by 2030 the fund could even reach a surplus.

According to Joller, achieving budget balance will require difficult choices, but essential healthcare services must not be reduced — instead, care pathways must be made smoother.

"If we can implement the reforms already underway — using more digital, data‑based, and AI‑based solutions, expanding the use of e‑consultations, and strengthening primary care and prevention — then achieving budget balance is realistic," the minister said.

According to Siiri Lahe, chair of the Health Insurance Fund's management board, the budget for the next four years has been prepared with the principle that every euro invested in healthcare should create the greatest possible value for people's health.

"We invest in healthcare according to our means — that is, according to how much money is in the system. This means we must find a balance between different needs. It is important to link healthcare funding more closely to the quality and outcomes of care," Lahe explained.

The development plan of the Health Insurance Fund aims to increase the number of healthy life years for Estonian people, and Lahe said this will be the focus in the coming years: every euro directed into healthcare must support the growth of healthy life years.

"Against the backdrop of implementing the development plan's goals, we are focusing on organizing the healthcare system more efficiently. Freed‑up resources will be directed toward funding new services and medicines. Our goal is that the quality and accessibility of services do not decline, and that every person receives the necessary help at the right time and in the right place," Lahe said.

The Health Insurance Fund's four‑year forecast continues to account for wage increases for healthcare workers, as Estonia's average wage is also expected to rise. However, in the current financial forecast, the update of the wage component included in service prices has been postponed by nine months. Thus, the wage component will increase starting not on 1 April next year, but on 1 January 2028.

The Health Insurance Fund emphasized that this is a budgeting assumption that will still be discussed during the decision‑making process. Minimum wage levels for healthcare workers are agreed upon in collective bargaining negotiations between unions and employers.

According to OECD data, healthcare expenditures in Estonia amount to 7.5 percent of GDP, while the EU average is just under 10 percent.

--

Follow ERR News on Facebook and X and never miss an update!