The Health Insurance Organisation (HIO) is seeking tougher penalties and stronger controls to combat abuse of the General Healthcare System (GHS) by both providers and beneficiaries.
An amending bill submitted to the Ministry of Health proposes significantly higher fines, while certain offences could carry prison sentences of up to two years.
Stronger controls and increased staffing
HIO Board member Kyriakos Drousiotis, who chairs the organisation’s Ad Hoc Committee on staffing, said efforts to address staffing shortages were being pursued in cooperation with the Ministry of Finance.
He added that the initiative had received the support and positive response of the Finance Minister.
The committee was established in 2023 with a mandate to examine HIO staffing, assess control procedures and review the Board’s lines of defence.
It includes representatives from the Ministries of Finance and Health, the government, the Cyprus Federation of Patients’ Associations (OSAK) and the Cyprus Employers and Industrialists Federation (OEB).
In 2026, it was renamed the Human Resources Committee.
Fines and prison terms for false declarations
The HIO has placed particular emphasis on tackling abuse within the GHS. According to Drousiotis, the aim is to strengthen controls and deterrence so that violations involving providers and beneficiaries can be addressed more effectively.
The proposed legislation includes tougher penalties and enhanced inspection powers.
Under Article 61(2) of the General Healthcare System Law, the fine imposed on anyone who knowingly provides false or inaccurate information to register with the GHS would rise from €3,500 to €8,000.
The bill would also introduce the possibility of a prison sentence of up to two years.
Provider fines could reach €600,000
The proposed sanctions for healthcare providers are significantly higher.
Under Article 63 of the law, the maximum administrative fine that the HIO may impose for breaches of GHS legislation would increase from €30,000 to €300,000.
If the violation continues, an additional administrative fine of up to €600,000 could be imposed.
Drousiotis said that intensified inspections, combined with higher penalties, were expected to contribute significantly to reducing abuse.
He added that the HIO Board had identified, recorded and prioritised several issues and was working methodically and strategically to improve the organisation’s operations.
GHS budget has doubled since 2019
Drousiotis also stressed the need to improve procedures further, noting that the GHS remains a relatively new healthcare system.
Its budget has approximately doubled between 2019 and 2026.
The HIO aims to strengthen oversight and curb abuse through increased staffing, stricter sanctions and more intensive controls, helping to ensure the GHS operates more effectively and appropriately.
