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In 2014, the Cyprus Guaranteed Minimum Income and Social Benefits Law was passed to replace the previous Public Assistance and Service Law. It covers all EU citizens and also long-term residents with legal status, and its main intention is to shelter those with higher risk of poverty and to guarantee the recipients with basic standard of living.
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[2] [3] Cyprus has a multi-payer health care system that consists of a public and private sector. [2] The public sector is funded by payroll, earnings taxes, and employer contributions. [2] The public sector healthcare provides social insurance for the employed, self-employed, and for several types of civil servant. [2]
Social insurance differs from public support in that individuals' claims are partly dependent on their contributions, which can be considered as insurance premium. If what individuals receive is proportional to their contributions, social insurance can be considered a government "production activity" rather than redistribution.
The Health Insurance Organisation is a state agency which runs the healthcare system in Cyprus. It manages a budget of €1 billion which pays for the Gesy system. It negotiates with the Cyprus Medical Association .
The online payment is not a credit card payment but a very flexible direct debit formula and each citizen is granted an additional 5 days after the payment deadline to pay directly online. The amount will be debited from their bank account 10 days after the payment deadline indicated on the notice.
From 1 March 2020 it will include hospital care, and contributions will rise to 2.65% for employees, 2.9% for employers, 4.7% from the state , and 4% for the self-employed. There are co-payments which are capped at €300 per year for patients and €75 per year for low-pension earners and recipients of Guaranteed Minimum Income. [4]