The Ukrainian government has recently approved the “E-Potential” social insurance reform bill. This law aims to support citizens who are employed and have insurance history but need medical treatment or rehabilitation following illness or injury. It is important to note that this reform does not apply to people with disabilities, but focuses on working individuals temporarily unable to work due to health issues and who need state assistance to recover.
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Why is this reform necessary?
The ongoing war in Ukraine has had a significant impact on the social sector. Many citizens have been forced to join the military, leave their jobs, or relocate abroad. At the same time, for those who remain in Ukraine and continue working, it is critical to create conditions for proper medical and social support during recovery from illness or injury.
The old social insurance system is not equipped to effectively provide the necessary support to these individuals. We are losing productive workers, and those who need help are not receiving enough assistance. The “E-Potential” reform is aimed at creating a fair and transparent mechanism for distributing support, ensuring that working citizens get the help they need during this difficult time.
Key provisions of the “E-Potential” reform
- Increase in social insurance benefits For individuals with complete loss of working capacity, the social benefits will nearly double. This will allow people who are unable to work due to illness or injury to receive higher financial support. For individuals with partial loss of working capacity, the difference between their previous income and the salary they will receive upon returning to work will be compensated.
- Increase in compensation for treatment and rehabilitation One of the significant changes is the increase in compensation for treatment and rehabilitation periods. Support will be provided for a longer period: the paid treatment period will be extended to 1 year and 4 months for full recovery. This will allow workers to undergo necessary medical treatment and rehabilitation without facing financial hardship. Additionally, job retention guarantees will remain in place for the entire period of recovery.
- Preservation of benefits for people with disabilities For people who already have disabilities, the reform will preserve all existing benefits and payments. The state will continue to provide necessary rehabilitation aids, social services, retraining, and assistance with employment.
- Separation of statuses: disability and work capacity A key component of the reform is the introduction of separate definitions for disability and work capacity. These statuses will no longer be combined, allowing individuals to receive support based on each specific status (either work capacity or disability), making the system fairer and more effective.
- Independent assessment of work capacity The reform also includes the introduction of an independent assessment of work capacity, which will no longer depend on medical commissions (MSC). This will ensure a fair and objective determination of the level of work capacity loss and, consequently, the amount of benefits an individual will receive. This approach guarantees fairness and transparency.
- Digitalization of processes Another important part of the reform is the digitalization of the social insurance process. An electronic system will be created to integrate social and medical data, which will significantly reduce bureaucracy and waiting times. This will allow quicker processing of applications and provide citizens with easier access to the services they need.
When will the reform come into effect?
According to government plans, the “E-Potential” reform is scheduled to start in 2025. By that time, all necessary regulations and mechanisms will be developed to ensure effective implementation of the reform.
The “E-Potential” social insurance reform is an important step toward creating a more effective and just social support system for working Ukrainians who need assistance following illness or injury. Increased benefits, extended treatment periods, and digitalization of processes will significantly improve the lives of citizens, ensuring their recovery and maintaining their work capacity while providing necessary support during challenging times.
