Heddam: “CNAS disbursed 17,600 billion centimes (DA) to repay patients’ pharmaceuticals within a year”

The National Social Insurance Fund (CNAS) recorded a 10% increase in revenue contributions in the first quarter of 2016, according to the quarterly report expounded Sunday morning at the economic Forum of the daily El Moudjahid in Algiers, by its Director General, Tidjani Hacène Heddam.

The latter deplored, however, the 8% annual increase in the number of work stoppages and therefore the reimbursement of expenses that weigh on the financial capacity of the fund whose resources are limited, only earmarked for, contributions and state aid in times of crisis. 

Indeed, to maintain balance between expenditure and revenue contributions, the government has taken restrictive measures through which it called for the retrieval of all contributions by requiring the insured (employees and employers) to pay their proportionate share. It was the only solution to prevent the deficit from widening further with the Insurance Fund facing rising social charges, he affirmed.  

In 2015, CNAS paid particular attention to developing its management systems in order to preserve the sustainability of the social system and this, in accordance with the directives of the relevant ministry, those of the government and the complementary finance law 2015. This last forced employers to pay their dues and to straighten out their administrative situation vis-à-vis the CNAS. 

“Since this decision to date, more than 141,100 employers have honored their debt. We have also recorded more than 18,000 payment plans that have not yet paid their debt because of their woeful financial situation, stressed” Mr. Heddam, adding that “the number of voluntary members is estimated at over 7,200 people active in the informal economy”. 

Through their contributions, they can get through for a period of three years benefit of the CNAS. “They contribute nearly 2,400 dinars per month, or 12% of the guaranteed minimum wage.” he said.   

These guidelines have helped improve the revenues of the CNAS by 7% in 2015 compared to 2014 while a 10% hike was recorded in revenues during the first quarter of 2016 compared with the same period of 2015. 

This is justified by the achievements and prospects of the CNAS to improve services and gear towards modernization. 

A colossal work provided by 49 agencies and 826 payment centers that support the repayment of the different areas covered by the insurance sickness, maternity, disability and compensation for accidents and occupational diseases, Mr Tidjani Heddam explained.

The expenses of the Fund registered in pharmaceutical products exceeded 176 billion dinars in 2015 against 166 billion dinars in 2014, ie 10 billion dinars in additional cost. During the first quarter of 2016, the CNAS disbursed more than 47 billion dinars to repay drugs. 

This bill was burdened with the taking in charge of the 26 chronic diseases and this has proved expensive for the Fund. This figure is up 8% annually.

“For the management of care provided by private clinics of Hemodialysis under contract with the CNAS, whose number is set at 17, the cost is estimated at over 1 billion dinars for 2000 patients and over 2 billion dinars for care performed at the hemodialysis centers whose number is 155 and which receive 9108 patients. For medical transportation, the CNAS has spent 631 million dinars and 67 billion dinars for the hospital fees”, Mr Tidjani Heddam emphasized.   

“Continuous improvement in the CNAS benefits is, also, carried out through the computerization of all data of the fund and the modernization of its payment systems (E-banking and E-payment) and their widespread use throughout the national territory in the example of the Chifa card”. 

CNAS has also established, he said, new measures to reduce the complacent work stoppages that affect the financial health of the CNAS. In 2015 more than 861,000 work stoppages were recorded for a refund amount that exceeds 18 billion dinars. “This figure is increasing, unfortunately by 8% each year,” he lamented.

Questioned by the press on the disappearance and the lack of certain career records of employees during the 90s, especially for those who are approaching retirement age, Mr. Heddam assured that “a colossal work is being carried out together with the CNR (Retirement Pension Fund) to find the defined employment records of those workers close to the retirement age, “adding, moreover, that in order to help these people they must be formally declared by their own employers whose administrations are forced to submit the DASS files to facilitate the work of the CNAS.   

In the absence of traceability, the mission would be difficult for the services of the CNAS to find some employees’ career statements. Even at its archives center that was not computerized at the time. Not to forget the events of the black decade witnessed by Algeria in the 90s, during which several records were destroyed. Certain companies have disappeared or changed status. This further complicated the situation of these workers and will deprive them of many years of work and a fair retirement pension, he underscored.

In order to clean up this situation and prevent this from happening, Mr. Heddam insisted that “all private and public administrations are subjected to the same rules and must compel their employees to comply with the law.”

 It is for this reason that the CNAS is strengthening its control and warns employers against any negligence which will be severely penalized. “Over 35,000 employers were subjected to control in the first quarter of 2016, and we recorded 16,000 volunteer affiliations bound to straighten out their situation within three years,” he said, adding that “this responsibility is devolved primarily upon the CNR services”. He asserted to this effect that the quota allocated by the CNAS to the National Retirement Fund (CNR) improved in 2015.

“The litigation case has been closed since December 2015. The French PHP recognized that millions of Euros were deducted from the bill. This is what has allowed us to cleanse the situation,” Mr Hacène Tidjani Heddam added.