Select Committee on European Scrutiny Thirty-First Report


5 European health insurance card

(24316)
6924/03

COM(03) 73

Commission Communication on the introduction of a European health insurance card.

Legal base
Document originated17 February 2003
Deposited in Parliament4 March 2003
DepartmentHealth
Basis of considerationEM of 17 March 2003 and Minister's letter of 15 July 2003
Previous Committee ReportNone
To be discussed in CouncilNo date set
Committee's assessmentPolitically important
Committee's decisionNot cleared; further information awaited

Background

5.1 According to the Commission, the Barcelona meeting of the European Council decided that, as part of the overall aim of removing obstacles to geographical mobility by 2005, a European health insurance card should be created, which would replace all the paper forms currently needed for an individual to receive health treatment in another Member State, thereby simplifying procedures, but without changing existing rights and obligations. The Commission has set out in this Communication ways in which this objective might be achieved.

The current document

5.2 The Commission suggests that the introduction of a single, personalised card should in the first instance replace by 1 June 2004 form E111, which covers those temporarily visiting another Member State on holiday or business trips, and would involve either adapting existing national cards or each Member State introducing a new European card. At a later stage, other forms relating to temporary stays would be included, such as those covering employees posted to another country (E128), international road transport (E110), students (E128) and job seekers (E119). Initially, the card would provide information on its face, but the longer-term aim is to have a smart card containing encoded information.

5.3 In putting forward its proposal, the Commission recognises the great differences between the Member States' arrangements in this area, and that any card at Community level will need to take this diversity into account, with implementation being gradual and flexible, and the means strictly proportional to the objective. However, it also suggests that the European card would need to have common features enabling it to be recognised and used in all Member States, and that, in order to maximise its benefits, certain other steps ought to be taken, such as providing the same entitlement to all categories of insured persons, and reducing the additional formalities imposed in some Member States when health care is sought.

The Government's view

5.4 In his Explanatory Memorandum of 17 March 2003, the Minister of State at the Department of Health (Mr John Hutton) said that the proposal had a number of important policy implications so far as the UK is concerned. He added that, whilst the Government was generally supportive of proposals to simplify bureaucracy, detailed consideration would need to be given to how such a card should be produced in the UK, and that it would be important to ensure that the financial and administrative burdens of producing it, particularly in the case of a smart card, did not exceed the benefits to citizens and the administration.

5.5 The Minister also indicated that a full Regulatory Impact Assessment would be provided as soon as possible, and, in view of this, we decided to defer our consideration of the document until that was available. However, we have since received a copy of a letter which the Minister sent on 15 July to the Chairman of the House of Lords Select Committee on the European Union, in which he explains that he is not yet in a position to provide the promised Assessment because many of the practicalities involved are still being examined.

5.6 More specifically, the Minister says that the issues to be decided include identifying precisely to whom the card should be issued — for example, whether to all UK residents, or merely those who apply for it — its length of validity, and whether it should be card, laminate or plastic. However, he suggests that, although the extra costs which will undoubtedly arise at the first stage of introduction in the UK cannot yet be quantified accurately pending decisions on the numbers to be issued, the production site and method, and a variety of technical issues, there may be cost savings as current methods of issuing paper forms run down. He also believes that any eventual movement to an electronic card would have "substantial" cost implications, partly from the need to produce such a card for UK residents, but more particularly to enable those produced by other Member States to be read by service providers in this country, such as hospitals, general practitioners, dentists or pharmacists. In addition, the Minister points out any smart card scheme would need to take into account parallel developments across Government, such as the Home Office's proposed entitlement cards scheme, and that in practice this stage of the proposal is unlikely to come about unless and until there is a perceived need for such an undertaking for reasons of UK national policy and practice.

5.7 The Minister concludes by saying that work is in hand to provide detailed cost information, and that he will write further when this is available.

Conclusion

5.8 Unlike some of the more nebulous initiatives undertaken by the Community, this measure would appear to be of some direct and tangible benefit to individuals. However, we note the practical concerns raised by the Minister, and that he will be providing further information on the likely costs involved. In view of this, we are at this stage simply reporting these developments to the House, and will consider the matter again when we have received the further information he has promised.


 
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Prepared 24 September 2003