The Draft Bill on Health is deemed to threaten the sustainability of BPJS Kesehatan

The Draft Bill on Health is deemed to threaten the sustainability of BPJS Kesehatan

The Draft Bill on Health is deemed to threaten the sustainability of BPJS Kesehatan - Supervisors express concerns that the Job Creation Law on Health may undermine the autonomy and independence of BPJS Kesehatan, which is a state-owned social security organizer, as the government's plan is to include the national health insurance providers under the Ministry of Health.

The draft law stipulates that BPJS Kesehatan will become the responsibility of the President through the Ministry of Health, while Law No. 24 of 2011 on BPJS states that the organization works directly under the head of state. Additionally, the omnibus law grants the Ministry of Health the authority to monitor the performance of BPJS Kesehatan and establish tariffs for medical procedures and medications related to reimbursement claims.

In the proposed regulation, BPJS Kesehatan is also required to carry out tasks assigned by the Ministry of Health, integrate its information system with a centralized system, and submit financial reports to the President through the ministry. The Ministry of Health has the power to form a team to appoint members of the board of directors and board of supervisors in BPJS Kesehatan. However, this policy is considered a threat to the independence of BPJS Kesehatan by observers. Diah Saminarsih, CEO of the Center for Indonesia's Strategic Development Initiatives (CISDI), said this policy could open up wider opportunities for insurance fraud. Placing BPJS Kesehatan under the Ministry of Health could also cause conflicts of interest and make it difficult to terminate cooperation with hospitals that commit fraud.

Article 424 of the Job Creation Law states that BPJS Kesehatan must consult with the Minister of Health if it wants to terminate cooperation with hospitals suspected of violations. However, Indra Munaswar from BPJS Watch said that BPJS Kesehatan must remain independent because all of its budget comes from premiums paid by policyholders, making it not a state-owned enterprise funded by the state budget.

The Job Creation Law is also controversial among various groups. The Indonesian Medical Association (IDI) criticized the lack of public participation in formulating the law, and it is also considered to give greater power to the government in the field of health, including how doctors are educated, licensed, and distributed.

The Job Creation Law is intended to address the problems that plague national health services, such as low-quality services and lost revenues in BPJS Kesehatan, and increase the number of doctors and specialist doctors. In its nine years of existence, BPJS Kesehatan has suffered massive losses, recording a deficit of Rp 51 trillion ($3.4 billion) in 2019 and Rp 5.69 trillion in 2020. However, the law is still opposed by some parties as it is considered to have a negative impact on public health.