EU Regulation 574/1972 Article 95 on the calculation of the grants between nations to support health care of pensioners.

Refund of benefits in kind provided under sickness and maternity insurance to pensioners and to members of their families who are not resident in a Member State under whose legislation they receive a pension and are entitled to benefits

1. The amount of the benefits in kind provided pursuant to Articles 28(1) and 28a _and Article 29(1)_ of the Regulation shall be refunded by the competent institutions to the institutions which provided the said benefits, on the basis of a lump sum which is as close as possible to the actual expenditure incurred.

2. The lump sum shall be determined by multiplying the annual average per capita cost by the average annual number of pensioners and members of their families to be taken into account and by reducing the resultant amount by 20%.

3. The factors necessary for the calculation of the said lump sum shall be determined according to the following rules:

(a) the average annual per capita cost shall be obtained for each Member State, by dividing the annual costs of the total benefits in kind provided by the institutions of that Member State to all pensioners whose pensions are payable under the legislation of that Member State, under the social security schemes to be taken into consideration and to members of their families, by the average annual number of pensioners and members of their families; the social security schemes to be taken into consideration for that purpose are specified in Annex 9;

(b) in dealings between the institutions of two Member States, the average annual number of pensioners and members of their families to be taken into account shall be equal to the average annual number of _pensioners, and/or members of their family, referred to in Article 28(2) or Artricle 29(1)_ of the Regulation who, whilst residing in the territory of one of the Member States, are entitled to benefits in kind chargeable to the institution of the other Member State.

4. The number of pensioners and members of their families to be taken into account in accordance with paragraph 3(b) shall be determined by means of a list kept for that purpose by the institution of the place of residence, based upon documentary evidence supplied by the competent institution of the rights of the persons concerned. In the event of any dispute, the observations of the institutions involved shall be submitted to the Audit Board provided for in Article 101(3) of the implementing Regulation.

5. The Administrative Commission shall lay down the methods and procedures for determining the calculation factors referred to in paragraphs 3 and 4.

6. Two or more Member States or the competent authorities of those Member States may, after receiving the opinion of the Administrative Commission, agree to introduce other methods of assessing the amounts to be refunded.

NOTE - This was drawn up before the UK joined the EEC (EEA as now). It applies to all nations within the EEA.

It was drawn up before the huge movement of pensioners migrating from the Northern Countries to the south.

It has some curious features. Why is a reduction of 20% mentioned under item 2?

No independent observer can easily follow the calculation made by any Member State.