France's Social Security deficit Soars

The French social security accounts commission has indicated that the 1995 social security deficit will be about 62 billion French francs ($12.8 billion) and will be sustained at this level through 1996. The implications for the government and for the health service, itself part of the problem, are serious.

1994's overall deficit was 55.9 billion francs ($11.6 billion). This year the health care regime has been much more relaxed after the severe curbs on spending on treatment and prescriptions by the Balladur regime. 1995's health budget deficit is expected to be about 35.5 billion francs compared with 31.5 billion francs in 1994.

the rate of spending increase was kept down to 2.9% in 1994, but this year health spending has gone up 4.9%. Medical fees and prescription costs have risen 4.9% before reimbursement, instead of the 3% agreed by the health funds and the medical professions. The funds report problems in applying effective sanctions to doctors ignoring the 150 or so "good practice norms," or guidelines on treatment and prescriptions, which have been mandatory on the profession since 1994. The commission also refers to "psychological components" tending to push spending higher, among them the presidential electoral campaign of Jacques Chirac, in which he seemed to attack health spending curbs in their present form.