Financing

The healthcare system is financed, firstly, by the social welfare contributions deducted from employees’ salaries and the contributions paid by employers, and, secondly, by a contribution from the State. Employer and employee contributions account for around half of the revenue which goes towards funding the healthcare system. The State’s contribution is mainly drawn from general tax revenue.

The funds needed for the healthcare system come mainly from social security contributions, except for maternity benefits and allowances linked to leave for family reasons, which are financed by the State.

Every year, the National Health Fund (Caisse nationale de santé - CNS) sets out the total budget for health insurance and maternity leave for the following year. The budget is accompanied by a multi-year forecast, giving a prospective view of the likely financial evolution of the health-insurance system.

The CNS negotiates annual budgets with hospitals to cover their operating expenditure.

It enters into agreements with the various professional groups in relation to the pricing of services, in order to regulate the relationships between the health-insurance system and healthcare providers legally carrying on their profession in Luxembourg.

As for the financing of long-term care insurance, all active workers and all retired workers pay a special contribution of 1.4 % on all their revenue from professional activities (salary, pension and annuities), and on all their income from property. In addition to this contribution, a contribution is made by the State, and another by the electricity sector.