The Estonian Insurance Companies Association (EKsL) has approached the government with a proposal to increase the tax-free limit for expenses incurred to promote employee health to EUR 1,200 per year per employee in order to support the early detection of health problems and reduce people's out-of-pocket costs for covering health expenses.

“Through employer health insurance, companies bring additional money into healthcare, thanks to which people receive medical care faster, stay healthier, and the state saves resources in the form of prevented illnesses,” said Tuuli Pärenson, Chairman of the Board of the Estonian Insurance Companies Association. “The introduction of the tax benefit was the right and necessary step by the state. Today it is time to take the next step and update the limit according to the actual circumstances.”

The current limit has remained unchanged since 2018 and no longer meets the actual needs due to the increase in input prices and the expansion of the list of health promotion services.
The association of all insurers operating in Estonia is requesting an increase in the limit for tax-exempt employee health promotion expenses to a level that would ensure at least equivalent protection compared to the period when the limit was established. 

“Employer health insurance is an effective and functional solution that allows employers to contribute to the health of their employees effectively and with minimal administrative burden,” added Pärenson. “The direct positive effects of the solution are a reduction in employees' out-of-pocket costs and better access to healthcare services. Prevention, earlier detection of diseases and faster return to work have an indirect positive effect on both the Health Insurance Fund budget and the state budget as a whole.”

If an employer is able to contribute effectively and with a moderate administrative burden to the promotion of the health of its employees through voluntary health insurance, this will lead to several positive effects:

• Employer health insurance reduces people's out-of-pocket health care costs. Estonian households' out-of-pocket health care costs are 20–25%, while the WHO recommended maximum is 15%.
• Employer health insurance strengthens the solidarity-based health system because it reduces the risk that access to treatment depends on a person's personal ability to pay and also allows for the coverage of larger and unexpected medical needs.
• Employer health insurance allows employees to choose the doctor, medical facility, and appointment time that suits them, reducing dependence on place of residence, queues, and ability to pay.
• Employer health insurance supports prevention and early detection of health problems, thereby helping to avoid reduced work capacity and long-term disease burden, the costs of which are largely borne by the public healthcare system. Thus, employer health insurance has an indirect positive impact on both the Health Insurance Fund budget and the state budget as a whole.

In 2024, services worth 14.1 million euros were reimbursed through voluntary employer health insurance, and the forecast for payments in 2025 is 17 million euros.