Apostolos Tomaras
An extraordinary case involving tens of millions of euros being drained from the HIO fund has been brought to light by “K.” At a time when middle- and low-income households are struggling with rising costs and widening inequality, which carries serious social consequences, officials within the HIO appear to have wasted vast sums of money. These amounts are comparable to the state’s defense budget or the energy burden faced by households. This is money the welfare system urgently needs. Specifically, the issue concerns payments for healthcare services that were reimbursed twice.
According to well-confirmed information from “K,” based on three independent sources, the HIO paid an additional €150 million to healthcare providers and suppliers of medical materials. These were duplicate payments for services over an extended period that may have exceeded one year.
Information obtained by “K” indicates that HIO officials had identified the duplicate payments at some point. However, they failed to take the necessary corrective action to stop them immediately. The payments were ultimately halted last January.
This serious case of mismanagement was initially kept internal in an effort to prevent it from becoming public. At the same time, HIO services began efforts to recover the excess funds paid to providers and suppliers.
The costly mistake
According to “K,” for reasons that remain unclear, the HIO paid twice for services received from healthcare providers and suppliers. Specifically, the accounting department approved payments for inpatient care, which included both treatment and medication. It then reimbursed the same providers again for the medication, including expensive drugs that had already been covered as part of the treatment package.
Sources cited by “K,” including individuals from the Ministry of Interior, confirm that this process resulted in an additional €150 million in payments. Sources close to the Organization stated that the duplicate payments had been identified early. However, they were only stopped last January, after a significant delay.
Efforts to recover funds
According to available information, the HIO has spent the past three months attempting to correct the error by recovering part of the excess payments made to healthcare providers and suppliers. Some providers have acknowledged the overpayments, while others have reacted strongly and disputed the claims.
HIO response
The HIO, which was asked by “K” to comment on the reports of duplicate payments, confirmed the issue. However, it attributed it to a “procedural arrangement” that has now been addressed through a monthly offsetting mechanism. The Organization did not clarify whether the duplicate payment method is still being applied as part of what it describes as a technical and procedural matter that has already been resolved. It also did not specify the total amount paid under this arrangement.
Full statement from the HIO:
The Health Insurance Organization clarifies that this matter concerns a procedural arrangement related to the management of certain innovative medicines, primarily involving named-patient requests administered by hospitals.
This arrangement was introduced after the HIO assumed responsibility on December 1, 2024, for named-patient drug requests, in cooperation with healthcare providers. The goal was to establish a unified, transparent, and efficient process for recording and paying for these medicines.
Procurement of these pharmaceutical products continues through the Purchasing and Supply Directorate of the Ministry of Health, as these are high-cost medicines that require public procurement procedures.
Under this arrangement, the medicines are supplied through the Directorate and delivered to hospitals without immediate financial charge upon receipt.
Management is based on documented data provided by the Directorate to the HIO. On a monthly basis, an offsetting process is applied. The HIO reimburses hospitals for claims submitted for these medicines while also charging hospitals the corresponding cost of the medicines they received.
This system is intended to ensure the smooth operation of the healthcare system and the effective management of resources. Hospitals are billed and remain responsible for the medicines they administer to beneficiaries of the General Healthcare System.
Regarding the accumulation of funds at the start of this process, the HIO has already reached agreements with hospitals on specific timelines for recovery. These amounts are being collected through monthly deductions based on those schedules.
In conclusion, the issue is described as a technical and procedural matter that has already been resolved through a unified and transparent monthly offsetting mechanism.
The Organization states that it remains committed to the rational use of medicines, transparent resource management, and ongoing cooperation with hospitals.
