Lithuania healthcare financing and oversight reforms

Lithuania is implementing significant reforms to its healthcare financing and oversight mechanisms. The Compulsory Health Insurance Fund (PSDF) is projected to see a substantial budget increase for 2027, reaching approximately 4.86 billion euros. This growth is driven by rising employee and state contributions, with the goal of expanding services, improving specialist accessibility, and reducing patient waiting lists. For 2027, employee contributions are projected to reach 3.24 billion euros, while state contributions are set to rise to 1.4 billion euros due to a new calculation method linking state payments to average worker contributions.

To support this funding, the Ministry of Health has proposed a new tax on the first two days of sick leave for employees, politicians, civil servants, and military personnel. Applying a 6.98 percent PSD contribution rate to these payments aims to implement a solidarity principle, potentially generating an additional 7.5 to 8 million euros annually for the PSDF.

Parallel to these financial changes, the Seimas has approved legislative amendments to strengthen accountability. New penalties target entities that misuse fund resources or illegally charge patients, with fines ranging from 20 to 100 percent of the damage caused to the PSDF budget. For illegal charges taken from patients, fines could reach 5 to 15 times the amount collected. Additionally, institutions failing to comply with corrective orders from the State Patient Insurance Fund may face a two-year ban on entering new contracts.

Health Minister Linas Kukuraitis stated that 100 million euros are being allocated to the PSDF reserve to cover potential increases in service demand. While the reserve ensures responsiveness to unforeseen situations, the volume of untouched funds has sparked discussion.