Turkey's social security institution on verge of bankruptcy

According to an analysis by two Turkish medical doctors, 13 million Turkish citizens are indebted to Turkey's social security institution, unable to pay their general health insurance premium
Tuesday, 09 October 2018 20:30

Ergün Demir and Güray Kılıç, two Turkish medical doctors conducted an analysis of Court of Accounts regularity audit for Turkey's social security institution, revealing "13 million Turkish citizens are unable to pay their general health insurance premium, thus indebted to Turkey's social security institution.", local media reported.

THE LIE OF 'THERE IS NO ECONOMIC CRISIS'

The analysis of Demir and Kılıç noted that the social security system can healthily function only if there is a financially sustainable income policy and that the most important financial source of the system is the insurance and general health insurance premium. Based on the regularity audit of Turkey's Court of Accounts, Demir and Kılıç's analysis added that the political power in Turkey needs to explain why millions of Turkish citizens are unable to pay their general health insurance premium if there is no economic crisis as the political power suggests.

The regularity audit of Turkey's Court of Accounts shows that Turkey's Social Security Institution was unable to collect its accounts receivables amounting to 40 percent of its whole premium income in 2017. A total of 1084 Municipalities of 30 Metropolitan Municipalities, 519 Metropolitan Sub-provincial Municipalities, 51 Provincial Municipalities, 400 District Municipalities and 397 Town Municipalities are indebted to Turkey's Social Security Institution.

BORROWING COST OF THE TREASURY INCREASES

The analysis of Demir and Kılıç also noted that Turkey's Social Security Institution faces budgetary deficit each year and this deficit is incrementally compensated by Turkey's treasury, thus increasing the borrowing cost of the Treasury. Adding that although social security is for the benefit of the whole, the labour force, the retired and their spouses and children and those in need of health services are most directly related to the general social security services.

The analysis added that the financial reports of Turkey's Social Security Institution are not conducted in full and on time and thus their financial system does not show the real condition, not fully ensuring financial transparency.

The analysis concluded, given these points, the economic crisis in Turkey is in a chronic situation and seems to deepen in the near future. Thousands of workplaces announce bankruptcy, leaving tens of thousands of workers unemployed, added the analysis.

CRISIS NOTICE OF HOSPITALS: 'DO NOT BUY MEDICAL MATERIALS UNLESS OF NO VITAL IMPORTANCE'

Gazi University State Hospital at capital Ankara has allegedly released a crisis notice, indicating no medical material is to be bought unless they are of vital importance, local media reported.

Following the scandalous cases of cancer patients being denied medical care due to lack of medication in hospitals, the supply of medical materials are alleged to have been limited by the board of chief physician due to increases in exchange rates. The crisis notice of Gazi University State Hospital calls necessary health materials "public loss", referencing to Turkey's Court of Accounts.