The Management Board is the body managing the Health Insurance Fund. The Management Board consists of three to seven members, one of them being the Chairman of the Management Board. The term of office of the members of the Management Board is up to five years. The Supervisory Board designates the Chairman of the Management Board. In order to find candidates for the office of the Chairman of the Management Board, the Supervisory Board organises an open competition. On the proposal of the Chairman of the Management Board the Supervisory Board designates the other members of the Management Board.

In the management of the Health Insurance Fund the Management Board performs the functions imposed on it by this Act, the Statutes of the Health Insurance Fund and the decisions of the Supervisory Board. The Management Board sees for the performance of the functions and obligations as well as for the exercise of the rights of the Health Insurance Fund insofar as, by virtue of this Act or the Statutes, it is not the task of the Supervisory Board or Chairman of the Management Board. The Management Board reports to the Supervisory Board. On the basis of the national health care policy the Management Board prepares the development plan and the budget of the Health Insurance Fund and submits these to the Supervisory Board for approval. If the Supervisory Board does not decide otherwise, the Management Board prepares the materials and draft decisions to be discussed by the Supervisory Board.

The Management Board shall:

1) draw up the development plan and the annual action plan of the Health Insurance Fund and submit these to the Supervisory Board for approval;

2) prepare and submit to the Supervisory Board the materials and draft decisions necessary for making a proposal concerning the improvement of the health of the insured, the prevention of diseases and the establishment of reference prices and limits applicable to the payment for health services and to the distribution of the medicinal products subject to a discount;

3) see for the formal and substantive correctness of the documents drawn up by the Health Insurance Fund and for their compatibility with the law;

4) at least once every three months, provide the Supervisory Board with an overview of the activities and the financial situation of the Health Insurance Fund, and immediately notify of the considerable deterioration of the financial situation of the Fund and of other  relevant  circumstances concerning the activities of the Fund;

5) prepare the draft budget and, where appropriate, the draft of the supplementary budget and submit these to the Supervisory Board for approval;

6) draw up the plan for the monthly breakdown of the budgeted expenditure of the Health Insurance Fund and submit this to the Supervisory Board for approval;

7) approve the budgets of regional departments on the basis of the budget of the Health Insurance Fund approved by the Supervisory Board;

8) submit to the Supervisory Board for approval the bases of entering into contracts with the providers of health services, the criteria of selecting contracting parties and the conditions relating to the availability of health services;

9) approve the plan for entering into contracts with the providers of health services;

10) draw up the annual accounts and the annual report of the Health Insurance Fund and submit these to the auditor for verification and to the Supervisory Board for approval no later than four months after the end of the financial year;

11) make known its opinion to the Supervisory Board as regards the designation of the auditor and the determination of the amount of the auditor’s remuneration;  

12) make a proposal to the Supervisory Board for the approval of the structure of the Health Insurance Fund;

13) approve the Statutes of the structural units of the Health Insurance Fund;

14) employ and dismiss the head of each structural unit of the Health Insurance Fund;

15) set up committees;

16) make a proposal to the Supervisory Board for the approval of the internal rules of procedure and administrative procedures of the Health Insurance Fund and the rules for maintaining the database referred to in § 2(2)(3) of the Estonian Health Insurance Fund Act;

17) make a proposal to the Supervisory Board for the approval of the accounting policies and procedures;

18) make a proposal to the Supervisory Board for deciding the acquisition, transfer and encumbrance of immovable property and the movable property already registered or to be entered in the register, and the taking of loans;

19) where appropriate, require the convening of the meeting of the Supervisory Board;

20) determine the use of the budgetary cash reserve of the Health Insurance Fund, except for the financing of expenditure which causes the cash reserve to fall below 5 percent;

21) determine the effecting of transactions on the account of appropriations for the next, if their total amount does not exceed 25 percent of the respective appropriations for the current financial year; 

22) determine the nullification of an earlier decision of the Management Board in cases where a member of the Management Board has requested this or where the Supervisory Board has expressed its position in this regard;

23) check whether the health insurance money has been used purposefully;

24) approve the rules of procedure of the Management Board;

25) subject to the law, perform other functions necessary for furthering the objectives of the Health Insurance Fund.