Nicosia, Cyprus. Cyprus’ national healthcare system, Gesy, appears secure from a funding perspective, lawmakers heard on Thursday. The House health committee reviewed the 2026 budget of the Health Insurance Organisation (HIO), which runs Gesy.
Budget review and current balance
The committee discussed the HIO’s 2026 budget as Gesy’s balance sheet this year stands at €2.19 billion.
Cash buffer and reserve threshold
Disy MP Savia Orphanidou said the committee received assurances from the head of the HIO that the organisation has a €700 million cash buffer.
A recent risk report identified a potential funding-related risk, although it found the €700 million cash reserve satisfactory. The reserve is sufficient to cover needs for about four-and-a-half months assuming no contributions, compared to an internationally accepted threshold of three months.
Efficiency concerns and projected reserves
Orphanidou and other lawmakers urged the HIO to address inefficiencies and abuses in the system highlighted in the risk report.
An actuarial report said Gesy will continue to post robust cash reserves up until 2032.
Provider compensation and residency issues
Another risk identified concerns compensation paid to Gesy healthcare providers, mainly personal doctors, for beneficiaries who may not be residing in the Republic.
People with their usual residence in Cyprus who contribute to Gesy through their salaries are beneficiaries. Compensation to personal doctors is calculated based on the number of patients enrolled with them.
What steps do you think should be taken to reduce inefficiencies and prevent abuses in Gesy?
