Parliament has unanimously approved the 2026 budget of the Health Insurance Organisation (HIO), endorsing €2.13 billion in projected spending while voicing cross-party concerns about the long-term sustainability and quality of the country’s General Healthcare System (Gesy).
The balanced budget provides for total expenditure and revenue of €2,129,360,000. The bulk of income — €2.1bn — will derive from Gesy contributions, alongside €4m in state grants for co-funded projects, €8.6m in administrative revenues and €16.36m from reserves. The opening cash balance on 1 January 2026 is estimated at €652.4m.
Spending is dominated by Gesy costs, totalling €2.05bn, of which €2.046bn covers healthcare services. Operational and administrative expenses amount to €41.56m, including €11.6m in staff salaries and €457,281 in remuneration for the board and advisory committees. Development expenditure stands at €37.6m.
Sustainability and oversight concerns
Despite the unanimous vote, MPs across the political spectrum warned that rising budgets must be matched by improved outcomes.
DIKO MP Panicos Leonidou described it as an “institutional obligation” to safeguard Gesy against weaknesses and distortions. He said support for the budget did not amount to unconditional approval, raising questions about whether steady increases in HIO spending are accompanied by corresponding improvements in service quality.
Mr Leonidou called for stronger access to innovative medicines, enhanced prevention policies and better chronic disease management, as well as tighter audit mechanisms to address overcharging and abuses. He also urged swift passage of legislation establishing a national clinical documentation centre and strategic workforce planning framework.
EDEK leader Marinos Sizopoulos backed free choice of doctor and hospital within Gesy but argued that the system’s budget has more than doubled in a decade without equivalent upgrades in services. He cited long waiting lists — exceeding six months in some key specialties — and alleged oligopolistic tendencies in parts of the market.
Transparency and quality
Green Party MP Charalambos Theopemptou raised transparency concerns, noting that unlike other public bodies operating under EU transparency guidance, the HIO does not publish detailed payment data showing who is paid, where funds are directed and when.
Independent Nicosia MP Alexandra Attalides described the budget as a reflection of social responsibility but insisted that quality is inseparable from transparency. She called for clear quality indicators and stronger oversight, citing cases of providers operating without adequate specialised equipment or staff.
From DIPA, MP Giorgos Penenintax stressed prudent resource management and warned that software issues, abuses and delays in reimbursing companions of patients sent abroad could affect long-term sustainability.
Limassol MP Andreas Themistocleous cautioned that unless distortions are corrected, total costs could approach €3bn. He also argued that the state should not fund additional healthcare schemes for civil servants already covered by Gesy.
Waiting lists
DISY MP Savvia Orfanidou said reserves of around €700m would only cover a limited period in times of crisis, expressing concern over continuous budget growth. She labelled persistent waiting lists unacceptable and urged the HIO to resolve ongoing software complaints, accelerate quality-based doctor assessments and use artificial intelligence tools to detect abuses.
AKEL MP Giorgos Loukaides argued that society continues to view Gesy positively, crediting its single-payer model with redistributing wealth more fairly. With a surplus nearing €650m, he said alarmism was unjustified but agreed that vigilance was needed. He identified the absence of a comprehensive health map and aggressive acquisitions of private hospitals by investment funds as potential threats.
Health Committee chair and DISY MP Efthymios Diplaros reaffirmed his party’s support while calling for stricter controls, rationalised spending and improved service standards, criticising shortcomings within the HIO.
Meanwhile, MP Zacharias Koulias delivered sharp criticism, claiming that prior to Gesy, services were delivered more swiftly at lower cost. He likened aspects of the system to a “stock exchange”, alleging excessive gains by certain providers, and voiced opposition to co-payments, arguing they undermine the system’s social character.
Though united in approving the budget, lawmakers signalled that 2026 will be a decisive year for reforms aimed at safeguarding Gesy’s financial stability and restoring public confidence in the quality of care.