Health and healthcare concerns are likely among the top worries for Lebanese citizens amid the ongoing crisis in the country, particularly for public sector employees whose salaries remain unchanged and who are enduring the harshest living conditions. In a notable step, the State Employees Cooperative, which guarantees these employees, has increased the rates for medical healthcare services by four times what they were on July 1, 2021, amounting to approximately 400%. This increase is attributed to "the difficult circumstances facing the country and their catastrophic impact on citizens, especially beneficiaries of the State Employees Cooperative, particularly after the value of employees' salaries has diminished to about 5%, rendering them unable to secure the most basic living for their families and to pay the exorbitant healthcare and medication bills." This was stated in the Cooperative's announcement.
This news is certainly positive, especially since other guaranteeing entities still rely on low rates, with the National Social Security Fund serving as a clear example of what Lebanese, including those covered, are enduring. The decision has been in effect since July 1 of this year, as affirmed by the Cooperative's Director General, Dr. Yahya Khmeiss, to MTV, indicating that all hospitals are now obligated to comply with this ruling regarding employees who require healthcare services.
Clarifying the details of the decision and the circumstances that allowed for its implementation despite the state's financial crisis, Khmeiss noted that "Our plan was to raise the rates in the 2022 budget in an acceptable manner based on our agreement with the Ministry of Finance to achieve good numbers in the budget. We were waiting for the budget to be approved, but unfortunately, it was not passed, and we were unable to raise the rates during that time, including educational grants. However, last June, we conducted a study on the appropriations noted in 2020, which was the last approved budget, and we found that we could benefit from existing allocations because it became evident from the expenses up to mid-June that we had the capacity to raise the rates. After studying the expected increase, we concluded that we could raise the rates fourfold."
To simplify the calculation for the new billing process for public sector employees' healthcare, it is now based on an exchange rate of 6000 LBP to the dollar. Khmeiss revealed that the rate may also witness additional increases if the budget is approved, predicting that "the differences in healthcare costs should decrease significantly."
As a result of this decision, approximately 370,000 individuals will benefit from the new rates upon entering hospitals, visiting doctors, and receiving treatments, which will provide at least modest security for employees. It is worth noting that the rate increase applies to standard medical services, including laboratory tests, ultrasound and MRI imaging, doctor's fees, and dental treatment rates.
Regarding medication, Khmeiss explains that "there are no significant issues with the Cooperative concerning medications, as we cover 100% of the medications for chronic diseases. A small portion of cancer medications is no longer supported, but the Cooperative continues to distribute these medications as available in the country, given that companies do not import large quantities due to their inability to access the necessary dollar allocations." He emphasized that "there is a price index for medications issued by the Ministry of Health, which we follow for payments while managing the dispensing of medications and quantities."
This is a different model from the public sector, affirming that failure and mismanagement are not inherent characteristics of public administration, which can be run correctly when the right employee is placed in the appropriate position.
