Forced administration at VZP to continue

The board of directors and supervisory board of the General Health Insurance Company (the VZP) has failed to approve cost-saving measures for the health insurance plan for 2006, meaning forced administration at the insurer will continue. A member of the board of directors revealed the information on Friday. Both the Health Minister David Rath and the prime minister, Jiri Paroubek, had linked the approval of addtional cost-saving measures with the cancellation of forced administration. According to Minister Rath, the VZP will run its finances according to a stopgap budget which includes cost-saving measures. Mr Rath imposed forced administration on the VZP last November - to prevent the insurer from slipping into further debt.