Slovakia

In January 1993, the Slovaks and Czechs agreed to peacefully separate into the sovereign nations of the Slovak and Czech Republics. The Slovak Republic subsequently became one of the success stories among the nations that had formed the Soviet bloc. With a current growth rate of six percent, the Slovak economy is strong. Privatization is almost complete, and foreign investors are deeply involved in the country, particularly in the banking sector. While inflation (2.7 percent) is under control, unemployment (16.4) continues to be a major concern. With a per capita income of $16,300, [Page 1558]Slovakia ranks 63rd in world incomes. Some income disparity does exist, and the richest ten percent of the population controls 20.9 percent of wealth as opposed to 3.1 percent for the poorest ten percent. After social transfers, over a fifth of the population is still at risk for living below the poverty line. The UNDP Human Development Reports rank Slovakia 42nd in overall quality of life issues.

The Slovak government spends a fifth of the total budget on health. Approximately ten percent of the Gross Domestic Product (GDP) is used to fund health programs, with $777 (international dollars) allotted per capita. The government bears the responsibility for 88.3 percent of all health spending, and 93.5 percent of government funds are earmarked for social security.

Through out-of-pocket expenses, the private sector provides 11.7 percent of total health funding. There are 3.18 physicians, 6.77 nurses, 0.27 midwives, 0.44 dentists, and 0.52 pharmacists per 1,000 population in Slovakia.

In Slovakia, health workers are paid considerably less than in the Czech Republic. Consequently, many Slovak medical professionals are filling gaps left by the flight of Czech doctors to more lucrative positions elsewhere in Europe. At least 700 Slovak physicians have already made the move to the Czech Republic, and others are leaving at the rate of 30 per month. There is great concern that in the future both countries may face a shortage of doctors if Slovaks follow Czechs into better paying positions. Some hospitals have begun to offer various enticements in an attempt to circumvent the potential shortage.

After a period of stagnation in healthcare between the late 1960s and the late 1980s, major reforms were instituted to improve health and to generate financing for health-related programs. Since 1991, residents have been able to choose private healthcare over that offered by the government. Despite the reforms, problems still exist; and policies are not always clearly defined, resulting in confusion and lack of coverage. In 2005, a new social insurance system was instituted, financed by mandatory contributions from workers and the self-employed.

Set percentages of those contributions are earmarked for old age and disability pensions and for individual accounts that are used to fund social programs. Workers contribute seven percent of earnings, and another 26 percent is generated from voluntary contributors. Self-employed individuals contribute 26 percent of earnings, and employers are required to submit 19 percent of payroll. Government funding provides 26 percent of the social insurance fund. Cash benefits are paid to ill workers and new mothers. All families also receive cash allowances, regardless of income.

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