Estonian health insurance relies on the principle of solidarity. The Health Insurance Fund covers the costs of health services required by the person in case of illness, regardless of the amount of social tax paid for the person concerned. The Fund uses the social tax paid for by the working population, also for covering the cost of health services provided to persons who have no income with regard to work activities.
Employers are required by the law to pay social tax for all persons employed, whereby the rate of this tax is 33 % of the taxable amount, and of which 20 % is allocated for pension insurance and 13 % for health insurance.
The purpose of health insurance in Estonia is to:
cover the costs of health services provided to insured persons;
prevent and cure diseases;
finance the purchase of medicinal products and medicinal technical aids;
provide the benefits for temporary incapacity for work and other benefits.
Health insurance is organised by the Estonian Health Insurance Fund and its four local departments. The Estonian Health Insurance Fund is the only organisation in Estonia dealing with compulsory health insurance.
Health Insurance Fund: http://www.haigekassa.ee/eng