If you are Self-Employed, a Business Owner, Student, Retiree or a Family Member of a Legal Employee of a Czech company, you must purchase Private Health Insurance.
If you are a Legal Employee of a Czech Company, you are REQUIRED to enroll in Public Health Insurance with your employer. If you have family residing with you they MUST purchase Private Health Insurance.
2. Why is there both Private and Public Health Insurance and how do they differ in the Czech Republic?
In 1995, the Parliament of the Czech Republic enacted legislation regulating how foreigners must obtain Health Insurance in the Czech Republic and created a segregated “Private” Health Insurance regulation for covering foreigners residing in the Czech Republic.
ONLY FOREIGNERS ON A VALID WORK PERMIT, working under a legal employment contract with a company registered in the Czech Republic, may enter the “Public” Health Insurance System, which is state-subsidized. ALL OTHER FOREIGNERS, INCLUDING FAMILY MEMBERS of legal employees, MUST purchase “Private” Health Insurance.
This segregation was put in place to avoid the practice of “Medical Tourism”, which is causing a catastrophic effect on the health budgets of other Western countries who allow foreigners into their “Public” Health Insurance System, since “Public” Health Insurance covers pre-existing conditions and “Private” Health Insurance does not.
This legislation was enacted to prevent foreigners with major illnesses from coming to the Czech Republic for treatment and taking advantage of the “Public” Health Insurance System at taxpayer’s expense.