Hungarians spurn private health insurance.

Hungarians apparently have yet to become enthusiastic about private hospitals and buying their own health insurance. Over the past six months, Providencia Austrian-Hungarian Insurance, under exclusive contract to Hungary's first private hospital, has sold only 100 policies covering health care at the facility.

It may be that many people simply can't afford private health care. Most if not all of the hospital's services are out of reach for most Hungarians. The 3.7m [pounds sterling] ($5.9m), 50 room, 100 bed hospital, located about 20 km west of Budapest, targets wealthy Hungarians and expatriates living there for extended periods of time and enjoying hefty corporate perks (BMJ 1998;316:1768).

Annual premiums range from 15000 to 30000 forints (394-7880 [pounds sterling], $629-12580), depending on the age of the policy holder. According to the national statistics bureau, the average monthly income in Hungary is about 50 000 forints (130 [pounds sterling]).

Laszlo Molnar, head of Providencia's health insurance department, said: "It's worse than we expected. The whole idea is new to this country. We've received free medical treatment for the past 40 or 50 years, so it will take time. Five or six months is not enough."

The hospital's backers are still betting on Hungary's anticipated economic growth and the emergence of private health insurance. The country now has only one healthcare insurer, the state social security system, and the government is currently studying health insurance reform. If it cuts back state subsidised health care, the private health insurance sector could grow.

COPYRIGHT 1999 British Medical Association