French health reform: A necessary step

As in other countries, demographic trends pose major challenges for the French health insurance system. These factors alone provide reason enough to tackle reform of the health system in good time. However, in France this was exacerbated by the financial difficulties already evident which were not caused primarily by poor economic performance (lower revenues). Health spending had shot up by 5 % a year since 1998, with the public health insurance system recording a deficit of EUR 11.9bn last year after EUR 6.1bn in 2002. This year’s deficit is set to reach EUR 13bn.

The reform passed in the summer is designed to bring the deficit down to EUR 8bn in 2005 and guide the system back into equilibrium by 2007. With the new rules, the government expects additional revenue of EUR 5bn while at the same planning savings EUR 10bn. Hopes are pinned in a shift of behavior among doctors and patients – too many prescriptions and treatments are seen as one of the main problems.