In a previous blog post, we focused on Hungarian public health insurance. This week, we explain how private health insurance works, alongside who and when should consider signing up for it.
How does the private health insurance system work in Hungary?
Private health insurance plans allow you to access private healthcare facilities for a monthly fee. These institutions usually offer higher comfort, shorter waiting periods (if any), and more modern equipment than public hospitals. They are open to people without private health insurance as well, but their fees can be quite high, especially if you need to visit them regularly. Consequently, the smaller monthly payments to an insurance firm may save you the headache of receiving a hefty bill later. It is worth noting that while the private health insurance system complements the public one well, certain treatments (e.g., heart surgery) are only available in the latter.
What is included in the health insurance coverage?
Most insurance firms offer three or four health insurance plans for individuals with different tiers of coverage. The cheaper packages are limited to preventive exams, whereas the more comprehensive packages include a wide range of treatments such as dental, gynecological, and obstetrical care. These premium packages are found in the HUF 20,000 (EUR 55) / month range. Most firms also offer corporate health insurance plans covering manager screening and other complex exams.
Since the components of packages may differ greatly between insurance firms, we recommend checking who offers what and choosing based on your needs. Health insurance is also required for work permit applications, but not all private packages are accepted. However, we are happy to help you pick the right option. Please note that private health insurance only covers medical expenses in Hungary, not abroad.
Which factors affect health insurance fees?
Private health insurance fees depend largely on whether you are an individual or a company. As a rule of thumb, individual packages are more expensive, but age and health have a significant effect on the price: the younger and healthier you are, the less you will need to pay. Corporate packages tend to be cheaper than individual ones, and large enterprises are in a better position when negotiating terms: as a result, they can usually offer more complete insurance plans as a benefit to their employees.
Private health insurance fees used to be tax-free for employers. Nowadays, however, they are taxable: they are subject to the same taxes (both on the employer’s and the employee’s side) as wages, including personal income tax, social contribution tax and vocational training levy. (Click here for a more detailed overview of payroll taxes.)
Should you sign up for private health insurance?
Employees and managing directors who have a Social Security Number (TAJ) and pay their contributions are entitled to public healthcare that should cover all their needs. However, if you prefer private healthcare and need medical attention regularly, signing up for private health insurance is a more comfortable option. Since it is difficult to advise on this matter because everyone has their own needs and preferences, asking a consultant is recommended to make an informed decision.
Would you like more information? Contact us!
Private health insurance plans offer access to better health care options for a monthly fee, whether or not you are eligible for public health care. If you would like to offer private health insurance for your employees, get in touch with the English-speaking accountants and payroll specialists of Helpers Finance for a detailed breakdown. You can learn more about our services here. You can ask for a consultation by calling our office on +36 1 215 0712, by e-mailing info@helpersfinance.hu or by filling in our contact form. If you would like to be notified about our future blog posts, please like us on Facebook.
