Minister powerless in face of pressure to raise health insurance contributions

The Sejm Health Commission will recommend to Parliament to vote to increase the health care contribution rate from the current 8.25% of gross salary to 9%. At the same time the commission decided to increase the level of health care contributions that taxpayers can deduct from their personal annual income tax. At present, individuals pay a contribution of 8.25% of their salary and deduct only 7.75%. According to the commission's proposal, next year they would pay a contribution of 9% and deduct 8.25%. The higher deduction threshold would mean lower revenues for the troubled state budget. The Finance Ministry estimates the 2005 loss at zł.2 billion. Health Minister Marek Balicki sees the increase as part of a political game. Some political analysts believe that certain parties are pushing for the proposals to make life harder for government, while economists argue that the move represents the height of financial irresponsibility. (Parkiet, p. 9; Rzeczpospolita, p. A3) T.J.