The latest amendment to the Act on the Residence of Foreign Nationals has brought about a long-awaited change in the area of health insurance for foreigners. The monopoly of the PVZP insurance company has come to an end and foreigners can now choose from other insurance companies authorised to provide this insurance. Read this article to find out what to look out for when making the switch and whether the transition from the PVZP to other insurance companies will happen smoothly.
The last 3 months have brought significant changes in the area of health insurance for foreigners. You can read about the new developments regarding health insurance for foreign minors in our latest article Children of foreigners will be covered by public health insurance from January.
Another long-awaited change is the abolition of the monopoly of the insurance company VZP, a.s. (“PVZP”), a subsidiary of VZP. The monopoly position of this insurance company led to a lack of competition in the market and limited the choice for foreigners. As of 2 August 2021, the Act on the Residence of Foreigners stipulates that any foreigner staying in the Czech Republic for more than ninety days is obliged to obtain comprehensive health insurance exclusively from PVZP. This law does not apply to foreigners who are covered by public health insurance or who are subject to other exemptions. Note that until August 2021, foreigners had the chance to choose from the offers of several insurance companies.
The end of the PVZP monopoly came on 20 September 2023. As of this date, foreigners can make a choice of their own and take out comprehensive health insurance with insurance companies that offer these services. Another change is the increase in the limit of insurance benefits per insured event from
CZK 3,000,000 to CZK 10,000,000.
For foreigners, there is a possibility to cancel the insurance contract with PVZP within three months from the date on which the amendment entered into force, i.e. 20 September 2023. It is not expected that there will be widespread cancellation of contracts with PVZP, because in the case of cancellation, there is no entitlement to a refund of the single premium already paid, which in this case remains with the PVZP insurer in full without exception.
The insurance company confirms that after three months from the amendment’s entry into force, the limit of contracts with lower insurance payment automatically increases to CZK 10,000,000, and PVZP clients are not obliged to take any additional steps. This means that foreigners do not need to send any additional application for arranging or extending the insurance and at the same time no arrears are incurred on the already existing insurance.
In the case of a switch to another insurance company, it is important to make sure that the two insurance policies are seamlessly linked, and that the foreigner remains covered by insurance at all times. If the foreigner fails to do so, it could cause complications for them in the future, even if they were not insured for a single day only.
Last but not least, a registry of health insurance for foreigners under the Czech Insurance Office is to be established for greater transparency and control over the activities of insurance companies. It is expected that access to the register will be granted to healthcare institutions as well as to the Ministry and the police. The register will contain data on commercial health insurance policies of foreigners. This information will be entered into the register by insurance companies.
The end of the PVZP monopoly has brought many benefits to foreigners, who now have a wide range of insurance companies with comprehensive health insurance. The renewed competition between insurers should lead to lower prices and improved quality of service.
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