The ministry refused to comment on the specifics of the new policy, but the move could lower the level of health care patients receive, according to media reports. Rath has said, however, that clients of VZP will not see any negative effects to their health care coverage as a result of the ministry's Nov. 10 decision to place the agency under forced administration.

VZP insured more than 6.5 million people here in 2004.

At a Nov. 11 press conference, Rath responded to comments from Shadow Health Minister Tomáš Julínek (ODS), who the previous day said that VZP clients would not receive the same level of coverage under forced administration. Julínek, a client of VZP, punctuated his remarks by saying he was considering finding another insurer.

Rath insists that the government guarantees 100 percent of VZP coverage. He added that the goal of the forced administration is to improve coverage by stabilizing the insurer's finances. VZP's debt is expected to increase to 14 billion Kč by the end of the year.

Rath cited VZP's debt as the primary reason for placing it under state control. He appointed Antonín Pečenka, the company's former deputy director, as the new administrator, giving him oversight of all management at VZP. Rath also called on Director Jiřina Musílková to resign for failing to bring the company's finances in order.

The ministry can impose forced administration for one year. VZP has until Nov. 25 to appeal. The company might exercise this option if it determines the government's case, including charges that VZP has repeatedly failed to pay health providers on time, is not legitimate, said company spokesman Jiří Suttner.

The new administrative team is in the process of auditing VZP's finances.