Food and water is generally safe, even in remote villages.
Private health care providers are high quality, but limited in scope once outside Budapest. Dentistry is cheaper here than in Western Europe (8-10000 HUF for an appointment and x-ray), and physiotherapy also (3000HUF for a half hour treatment), but check the price with the provider before you confirm the appointment. Outside Budapest you will likely have to speak basic Hungarian to communicate your needs as few doctors will have any English or German skills.
Public health care is free for qualifying (insured) people, and is of adequate quality in urban areas.
The country has joined the EU, so basic coverage is present for EU citizens, but check before entering the country how far are you insured and what you have to pay for. Do not expect at this time that the local doctor will know the EU rules, prepare to provide info.
The European Health Insurance Card is required from EU citizens applying for free treatment under this regulation; European health card for 1 June 2004.
Pharmacies are everywhere, you may expect high prices, but very good pharmaceutical coverage. The only problem might be communicating with the pharmacist as most of them speak only Hungarian outside Budapest. Even some rusty Latin might come handy quite unexpectedly. For travelers from Eastern Europe, note that due to limited or abandoned trade of Hungary with Romania (as of Dec 2006), some of familiar medications are unavailable--so be prepared to find a substitute in advance.
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