The Montenegrin government has allocated a budget of €487.12 million to the Health Insurance Fund (FZO) for the year 2026, a move that has sparked discussions regarding potential financial shortfalls. This budget reflects a 7.62 percent increase—equivalent to €34.49 million—from the previous year’s budget, which was aimed at ensuring the stability of health services for insured citizens.
According to FZO officials, the budget is “sufficiently rational” and is not expected to pose risks to insured individuals. The allocated amount for medications and medical supplies is set at €197 million, with €25 million designated for private pharmacies and the remaining €172 million for Montefarm, the national pharmaceutical distributor.
Concerns Over Budget Projections
Despite the optimistic outlook from the FZO, Sead Čirgić, a former director of the organization, has raised concerns regarding the adequacy of the proposed budget. Čirgić, who served as FZO director for over four years, argues that the budget for 2026 falls short of the actual expenditure for 2025, indicating it may be undervalued. He stated that the annual growth rate of health expenditure is approximately 10 percent, suggesting that the proposed budget does not align with the expected growth trajectory.
Čirgić further warned that even if the impact of certain health programs diminishes, the growth rate would likely remain above 7 percent. He estimates that this discrepancy could result in a funding shortfall ranging from €35 million to €50 million.
In response to a recent government approval of an additional €30 million to ensure the availability of medications and supplies by year-end, FZO officials emphasized that the budget for 2026 has been fundamentally planned. They acknowledged the possibility of variances in specific budget categories throughout the year but assured that reallocations would occur as necessary to guarantee comprehensive healthcare coverage for insured individuals.
Future of Healthcare Funding
The FZO maintains that the collaborative efforts among the Ministry of Finance, the Ministry of Health, and the Health Insurance Fund are crucial in enhancing strategies and addressing existing anomalies within the healthcare system. Čirgić believes that the healthcare system will remain a top priority for the government, particularly in light of growing public dissatisfaction among patients.
He expressed skepticism regarding substantial reforms in the system, predicting that patients will continue to face long wait times and the burden of healthcare costs. While he does not anticipate significant drug shortages that could destabilize the system, he highlighted the importance of proactive measures to restore public trust in healthcare services.
Looking ahead, Čirgić noted that the state is preparing to allow borrowing up to an unprecedented €3.1 billion through the 2026 budget law, which he views as extraordinary compared to planned revenues of €3.08 billion. This financial strategy raises questions about long-term sustainability and fiscal responsibility, especially considering that additional borrowing is expected in subsequent budgets.
As Montenegrins await the final implementation of this budget, the balance between ensuring healthcare accessibility and managing financial stability remains a critical challenge for the government and its citizens.
