Kela discusses welfare benefits amid government cuts in Finland

As the government cuts expenditures, discussions surrounding the benefits paid by the Finnish Social Insurance Institution, Kela, are intensifying. This is understandable given that Kela disburses around €16 billion annually across various benefits. The largest allocations, reaching billions of euros, include payments for healthcare costs, unemployment benefits, housing support, and pensions.

Despite upcoming changes to these benefits, Kela’s CEO, Outi Antila, reassures that there is no risk of collapse within the welfare state. “Currently, we don’t see signs indicating a collapse or deterioration of the welfare state. However, changes are inevitable, and the number of clients may rise somewhat,” Antila stated during an appearance on TV1’s Morning Show.

Although the government’s prior plans to increase private doctors’ compensation from €30 to €50 will not materialize, those aged 65 and over will gain access to general practitioner services at the cost of public health care. This initiative will allow them to select from general practitioners contracted with Kela, subject to a price cap.

The decision to select a specific age group for this trial stems from concerns that regional experiments could be interpreted as unconstitutional. Antila dismissed claims about unnecessary visits to doctors, arguing that there is always a reason for such consultations. “The quicker a person sees a doctor, the more it usually saves in specialized healthcare costs. People don’t visit without justification,” she emphasized.

Kela is also playing a role in tightening social assistance, resulting in thousands of Finns being urged to find cheaper housing. Antila highlighted the complexity of the social security system, emphasizing that merely merging benefits is insufficient without integrative services and support.

Antila will retire next spring, making way for a leader who can guide Kela through significant transformations, as the organization employs approximately 8,000 staff members. “Kela, as a large workplace, needs a professional leader,” she affirmed.