The finance minister has agreed to let insurance firms provide health coverage for state officials, in a move to control soaring costs.
Somchai Sajjapongse, permanent secretary for finance, said on Thursday that Finance Minister Apisak Tantivorawong agreed in principle to the participation of insurance firms after discussions with executives of the Thai General Insurance Association and the Thai Life Assurance Association.
The minister would ask the cabinet to approve the move, which should start in fiscal year 2018, Mr Somchai said.
In principle, insurance firms would collectively manage the overall costs of medical care for state officials. Coverage would apply to services at public hospitals only and would not expand to private hospitals, to keep the money revolving within the government sector, he said.
An important condition for the firms' participation was that medical care privileges must be the same or better, and premiums must not exceed what the government paid for the treatment of state officials - about 70 billion baht per year, Mr Somchai said.
The entry of insurance firms would reduce abuse. Some groups of state officials took turns to see doctors and get expensive medication for resale. That cost was born by the government coffers, Mr Somchai said.
The government's health insurance system covers almost 5 million state officials and their families.
At present, the government pays 68 billion baht a year for about 20 million health care claims by state officials and their families. The government is seeking ways to cap health care spending, which has risen by 2 billion baht a year on average.