Bulgaria's center-right government is expected to approve a 2 percentage-point rise in health insurance levies to 10 percent of an individual's income, effective from 2011.

This is envisaged under the new Health Insurance bill, which has been drawn up by the health care parliamentary commission and submitted to the government for discussion and approval.

“The hike will not be split between the employer and the employee and will be entirely covered by the health insured person,” Lachezar Ivanov, head of the commission, told the Bulgarian National Radio on Thursday.

“The new bill strictly provides for the ways of participation in health care insurance funds, the requirements they have to meet and the guarantees for the patients and the state,” Ivanov pointed out.

Earlier in the month the government made a U-turn in its health care plans and abandoned suggestions for a 2% health tax hike as of April 1.

The measure was approved amid doctors' walkouts and in a bid to raise additional funds to support the ailing system, but faced vehement opposition by the public sector. According to business representatives the rise will deal a heavy blow to the companies, which are already struggling in these times of crisis and will create conditions for the expansion of the grey economy.

Finance Minister Simeon Djankov offered an alternative solution, which would force state officials, who are currently making no health insurance installments, dig deeper into their pockets.

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