Identifier
Created
Classification
Origin
07THEHAGUE1955
2007-11-01 13:10:00
UNCLASSIFIED
Embassy The Hague
Cable title:  

SCENESETTER FOR HHS SECRETARY LEAVITT'S VISIT TO THE

Tags:  SOCI ECON PREL PGOV NL 
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RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHAT/AMCONSUL AMSTERDAM 3812
UNCLAS SECTION 01 OF 02 THE HAGUE 001955 

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: SOCI ECON PREL PGOV NL
SUBJECT: SCENESETTER FOR HHS SECRETARY LEAVITT'S VISIT TO THE
NETHERLANDS, NOVEMBER 8-9, 2007


THE HAGUE 00001955 001.2 OF 002



UNCLAS SECTION 01 OF 02 THE HAGUE 001955

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: SOCI ECON PREL PGOV NL
SUBJECT: SCENESETTER FOR HHS SECRETARY LEAVITT'S VISIT TO THE
NETHERLANDS, NOVEMBER 8-9, 2007


THE HAGUE 00001955 001.2 OF 002




1. Embassy The Hague warmly welcomes U.S. Secretary of Health and
Human Services Leavitt and his delegation to the Netherlands
November 8-9. Your visit to the Dutch Health Ministry will provide
you with in-depth information about the new Dutch health care
system, which came into force as of January 2006. You will learn
first hand how the regulations and financing work, how insurance
payments flow, how patients can use insurance in public and private
institutions and how Governments supervise the programs. You will
meet with all stakeholders, including the Hospital Pricing Authority
(NZA),the Health Inspectorate (IGZ),the Insurance Authority (CVZ),
individual insurance companies, and academic health policy experts.
You will visit the Leiden University Medical Center (LUMC) in
Leiden, which is one the largest of its kind in the Netherlands.
The following provides background for your program as well as
information about the current political and economic situation in
the Netherlands and areas of U.S.-Dutch cooperation. (Post will
forward a detailed schedule as well as information on Dutch meeting
participants as soon as available. We understand that information
on the NZA, IGZ and CVZ has already been provided by the Dutch
Health Ministry.)

New Dutch Health Insurance System
--------------


2. In January 2006, the Netherlands moved to a mandatory but
privately-based national health care insurance system, with private
insurance companies serving as the sole providers of health care
insurance for Dutch citizens. The new system increased the role of
market forces in controlling health care spending, while also
ensuring access to health care for all through an obligation for
insurance companies to accept any client and income-based transfers
for citizens. A system of risk equalization enables the acceptance
obligation and prevents direct or indirect risk selection.


3. Under the system, the insured person pays a nominal premium to
the health insurer. Everyone with the same policy pays the same
insurance premiums. All people under 18 are insured but do not pay

any premiums. In addition, the Health Insurance Act also provides
for an income-related contribution to be paid by the insured person.
Employers contribute by making a compulsory payment towards the
income-related insurance contribution of their employees. The
health insurance package provides for essential curative care tested
against the criteria of demonstrable efficacy, cost effectiveness
and the need for collective financing. The current system includes
a no-claim bonus, which will be replaced next year by a compulsory
health insurance excess to be collected by the health insurer.
People with chronic illness or disability are compensated
financially.

Long-Term Care
--------------


4. In addition to the national health care insurance system, there
is the Exceptional Medical Expenses Act (AWBZ),which is a national
insurance scheme for long-term care. This scheme is intended to
provide the insured with chronic and continuous care. Everyone
legally residing in the Netherlands and non-residents on Dutch
payrolls are automatically insured and obliged to pay the statutory
contribution. The AWBZ insurance scheme is funded by premiums paid
by the insured, by a state subsidy, and by personal contributions
from care recipients. AWBZ contributions are collected through
taxes.

Bio Health Minister Ab Klink
--------------


5. Dr. Ab Klink became Minister of Health, Welfare and Sport on
February 22, 2007, in the fourth Balkenende government. He was born
on November 2, 1958, and studied sociology at the Rotterdam Erasmus
University and law at the Leiden University. He held several
positions in the Dutch Justice Ministry, and headed the policy
institute of the Christian-Democratic Party (CDA),of which he is
one of its main ideologists. From 2003 to 2007 he was a member of
the First Chamber (Upper House) for the CDA party.

Bio Finance Minister Wouter Bos
--------------


6. Mr. Wouter Bos was appointed Deputy Prime Minister and Minister
of Finance in the fourth Balkenende government on February 22, 2007,
and is leader of the Labor Party (PvdA). He was born on July 14,
1963, and studied politics and economics at the Free University in
Amsterdam. He held several positions with Royal Dutch/Shell, and
was a member of the Second Chamber (Lower House) of Parliament.

Leiden University Medical Center
--------------

THE HAGUE 00001955 002.2 OF 002




7. The Leiden University Medical Center (LUMC) in Leiden is one of
the largest university medical centers in the Netherlands. Its core
tasks are patient care, research, education for the faculties of
medicine and biomedical science, and specialist medical training.
The LUMC comprises the Leiden University Hospital and the Faculty of
Medicine of Leiden University. Patient care covers the entire
specter of top clinical care, including organ transplants,
cardiovascular interventions and all types of bone marrow
transplants. LUMC also offers a fixed volume of regional basic
care. A considerable proportion of LUMC research is
patient-oriented. The LUMC employs more than 7,000 employees.

Political Overview
--------------


8. The Netherlands is slightly less than twice the size of New
Jersey and has a population of 16.4 million. The Netherlands is a
constitutional monarchy with a parliamentary form of government.
Queen Beatrix is the titular head of state and has mostly ceremonial
duties, but does retain some political influence. The current
center-left government under Prime Minister Jan Peter Balkenende
(CDA),his fourth coalition government since 2002, came into office
in February 2007. It is comprised of his center-right Christian
Democratic Alliance (CDA),center-left Labor (PvdA),and orthodox
Protestant Christian Union (CU) parties. Balkenende's coalition
holds a narrow majority (80 out of 150 seats) in the Lower House of
Parliament and must cope with severe political pressure from strong
populist opposition parties on both the far right and far left.


9. The government's main challenge at this moment is whether or not
to extend Dutch participation in the NATO International Security
Assistance Force (ISAF) in southern Afghanistan, which it only
appears prepared to do if other countries come to help out. The
Netherlands is under severe pressure to extend because withdrawal of
its sizeable forces could cause the entire ISAF operation to
unravel.

Economy Overview
--------------


10. The Dutch economy depends on trade; Amsterdam's Schiphol
Airport (Europe's fourth busiest) and the Port of Rotterdam
(Europe's largest) make the country a gateway to Europe. The
Netherlands is the fourth largest source of accumulated foreign
direct investment in the United States and is the third largest
destination of foreign direct investment from the United States. GDP
grew by 2.9 percent in 2006, which put the Dutch ahead of eurozone
averages for the first time in seven years. Unemployment has fallen
to 5.5 percent.

U.S.-Dutch Cooperation
--------------


11. The Dutch generally take similar approaches to the U.S. on
international security, human rights, free trade, and rule of law
issues, although differences on specific policies are not uncommon.
The Dutch are committed internationalists who support strong
transatlantic ties through NATO and the further development of the
European Union. Long active in peacekeeping missions in the
Balkans, Dutch military forces participated in Operation Enduring
Freedom, made significant contributions to stabilization efforts as
part of Operation Iraqi Freedom, and continue to take part in NATO's
International Security Force in Afghanistan. The Netherlands is
also an international legal center and hosts the International Court
of Justice, the Iran-U.S. Claims Tribunal, and the International
Criminal Tribunal for the Former Yugoslavia.

U.S. Mission Background
--------------


12. The U.S. Mission to the Netherlands, including the Embassy in
The Hague and the Consulate General in Amsterdam, has employees from
the Departments of State, Commerce, Agriculture, Justice (DEA and
FBI),Homeland Security (DHS),Defense, and NASA. DHS's
Immigration
and Customs Enforcement (ICE) and Customs and Border Protection
(CBP) maintain offices in Rotterdam and at Schiphol Airport. The
U.S. Secret Service has a Europol liaison officer stationed in The
Hague. The Consulate General in Amsterdam provides all consular
services in The Netherlands and includes offices for DHS's Customs
and Border Protection and the Commerce's U.S. Commercial Service.
It serves a resident American population of 41,000 in addition to
over one million U.S. visitors annually.

Gallagher