Vienna  - Austria's government on Wednesday presented plans for a hotly disputed reform of its health care system, which is geared towards solving the financial difficulties of the country's ailing state-run health insurance bodies.

Key to the reform are changes in the structure of the health insurances, where power will shift from the individual regional and occupation-specific bodies to a central administrative unit, which is to be converted into a holding with increased executive power.

Health insurances will receive a financial boost of 125 million euros (192.5 million dollars) annually derived from income from cigarette taxes, additional, yet unspecified government funding. Debt worth 450 million euros will be dropped. Drug companies will also be required to contribute to reducing drug costs.

The reform introduces quality control for contracts between doctors and insurances, as well as a time-limit on contracts.

Doctor's competences on drug prescriptions are to be curtailed. Doctors will only be able to prescribe the active pharmaceutical ingredient, while pharmacists are to choose the cheapest appropriate drug.

The plans triggered heated protests from doctors, who announced protest measures in the upcoming weeks. Austria's state health insurances basically welcomed the deal. (dpa)