EXCLUSIVE – The Court of Auditors must undertake structural reforms to reduce spending, including Medicare, and fight against fraud in social security contributions has doubled in five years
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The control of social security spending begins to stall, warns the Court of Auditors. In its annual report on the implementation of laws on the financing of Social Security to be presented Wednesday and whose “Les Echos” have provided excerpts, judges are concerned that reducing the deficit of financial statements in 2013 was lower than expected, with structural insufficient efforts on the expenditure side. What threatens the objective of restoring financial balance in three years. Especially as growth prospects were further reduced last week by Bercy.
“The 2014 passed (Act funding amendment of 8 August 2014) trajectory appears to already compromised by the evolution of the macroeconomic environment during the summer. The scenario of a return to balance in 2017 is more uncertain: it would imply a doubling of the pace of deficit reduction in the next three years, even though the assumptions of growth and inflation on which it is based are questioned “, the Court wrote.
An unfortunate slowdown expenditure control
The expenses are not falling fast enough, said the Court. The borrowing of compulsory basic plans and Old Age Solidarity Fund (FSV) has certainly been reduced by $ 3.1 billion in 2013, but the law of initial funding had set a target of 3.7 billion. Moreover, this is a retreat from previous years (-3.5 billion in 2012, -7 billion in 2011.)
Spending increased 2.7% “at a pace barely inflected compared to the previous year (+2.9%),” and “much higher than the growth in GDP (1.1 %) “, said the Court of Auditors. So increased revenue that reduces the deficit, which amounted to 16 billion euros last year. Including new social security contributions, for a total amount of EUR 7.6 billion. Difficult to sustain a long-term trend.
The goal of Medicare spending is too little binding
The Court gives priority expenses insurance, which weigh heavily in the accounts of social security. The national target for Medicare spending (Ondam) set for 2013 was very restrictive, said the Court. “It has certainly been met: the actual expenditure was less than 1.4 billion euros this objective, without being able to see a sign of enhanced control spending. “ will require more transparency about the method of calculating the Ondam, said the Court.
While last year the judges had husked accounts hospitals This year they are looking at care city. The objective is to control spending less ambitious, because of ‘through construction to facilitate substantially’ compliance “risk jeopardizing the fairness of the law and finance to blunt increasing the role of regulating the spending target Medicare itself. “
The Court took the opportunity to revisit the topic of a June report, which harshly criticized conventional politics, that is to say, the contracts contracts between Medicare and doctors. These contracts only benefit doctors, writing in essence the Court: they increased their pay, but patients did not receive a better distribution throughout the country and the excess fees are becoming more common.
Doubling fraud social contributions
According to a survey by ACOSS at the request of the Court accounts, the amount of fraud in social security contributions has doubled in five years. In 2012, it reached between 20 and 25 billion euros, or 5% of the total – this calculation includes compulsory basic plans, CSG and CRDS, unemployment insurance and additional pension
“Despite progress in recent years, the effectiveness of remedies is very low due to the amounts involved: the level adjustments is less than EUR 1 billion in 2013″ , the Court wrote. In particular, it points to the low recoveries of illegal labor (291 million euros), “which is part of the massive contribution evasion.”
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