Draft Law of Ukraine

"On General Obligatory State Social Medical Insurance"

The draft aims at introducing general obligatory state medical insurance in Ukraine from January 1, 2006.

According to the draft, subject to obligatory state medical insurance are all Ukrainian citizens, foreigners and stateless persons staying in Ukraine on legal grounds.

Insurers providing obligatory state medical insurance are:

• employers – for employees;
• educational institutions – for students;
• local self-government bodies – for unemployed persons;
• social insurance funds – for persons obtaining material provision at the expense of social insurance funds.

According to the draft, insurance fees shall be paid to the Medical Insurance Fund. Their rate shall be annually determined by the Verkhovna Rada of Ukraine. Money of the Medical Insurance Fund shall be used for paying for medical services provided to insured persons. The list of medical services shall be determined by a separate law.

The draft, if approved, will increase tax pressure over business entities due to introduction of additional obligatory payments – insurance fees for state medical insurance.