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Cyprus
Elisavet Constantinou and Mamas Theodorou
Economic trends
• Cyprus' economy contracted in 2009 and growth was near zero in 2010
and 2011. Deficits remained high by 2011, even as most other European
countries had improved their fiscal situation; 10-year bond rates had also
increased slightly by 2011.
• Health spending as a share of government expenditure, while among the
lowest in Europe, remained steady from 2008 to 2011. While there was
significant growth in OOP and public health care spending per capita in
2008, growth in both series slowed considerably in 2009, 2010 and 2011
(Cyprus: Figs 1 and 2).
Policy responses
Changes to public funding for the health system
• Due to cuts initiated by the Ministry of Finance, the Ministry of Health
budget was 5.3% lower in 2012 than in 2011, with additional cuts
expected in 2013.
Changes to health coverage
Population (entitlement)
• Entitlement category B was abolished for all except people with specific
chronic diseases (MoU 2013), which increased the share of the population
without free access to publicly financed health care from 17% to 19%.
• Free care access for public employees and state officials who have to
contribute 1.5% of their gross salary or pension in order to be beneficiaries
of public health services was abolished (implemented from 1 August 2013
under the third term of the MoU).
• Implementation of national health insurance postponed to 2015 (2013).
The benefits package
• Ministry of Health plans to define a national benefits package based on
systematic criteria including cost–effectiveness (MoU 2013).