The original goal of the AWBZ was to finance care for patients with serious and long term illnesses. The scope of the law has been extended to cover other costs to the extent that the care covered by the AWBZ does not have sufficient financing. The provisions of the AWBZ Act are implemented by health insurance funds as well as public and private insurers. Premiums are income-related and paid by both employers and employees. In addition, employees pay a fixed rate related to household size.
Retired persons pay reduced premiums.
The provisions of the ZFW are implemented by health insurance funds. Contribution rates for the AWBZ and ZFW are fixed annually by the Government. Beginning in January 1997, persons insured with ABWZ and ZFW have been obliged to effect co-payment for certain services such as hospital stays, diagnostic tests and pharmaceuticals, with the exception of general medical and dental services. Persons whose earnings exceed the income level for obligatory insurance with the ZFW may take out a private health insurance policy, though insurance is not obligatory for this income group. Approximately 33 percent of the population is insured through a private health insurance fund.