Abolition of health insurance usurious rates

Cash contributions: Federal Government plans to abolish usury interest in defaulting contributors

04/03/2013

Hundreds of thousands of insured persons are heavily indebted in Germany for their health insurance. They can no longer pay their contributions. The reason for this is also the escalating usurious interest, which the health insurances have to demand due to the legal situation. The Federal Minister of Health Daniel Bahr (FDP) wants to put those on the test bench and abolish it.

It should be good news for heavily-insured health insurance. According to a press report, the black and yellow federal government plans to help hundreds of thousands of private and public health insurance borrowers. So reported the „Frankfurter Allgemeine Zeitung“, that Bahr proposes to abolish the usurious interest of up to 60 percent in the health insurance. In addition, in the private health insurance (PKV) a so-called „Emergency tariff, which should not cost more than 100 euros per month“. With these measures, the coalition wants to prevent a further progression of the debt mountain.

Interest almost higher than debt
Daniel S. started his own business three years ago. But the business is not going well and the revenue is missing. For six months he can no longer pay his statutory health insurance. But that's not all. „On top of it are so-called late payment surcharges“. So it happens that he doubles the actual backlog, even triples. „A chance to get out of the debt sump, I do not currently see“. And the health insurance company can not throw Daniel S out of the cash register. „In Germany there is a health insurance obligation“.

According to the newspaper, the Federal Ministry of Health is currently working on a bill. The draft is currently being voted on by the individual ministries. The timetable provides for the bill to be passed before the federal election in September. „The current regulations have not led to an improved situation“, it says from the Ministry.

According to the association of private health insurances currently around 150,000 private individuals can not pay their contribution or only incomplete. Already in the fall of 2011, the arrears amounted to about half a billion euros. The statutory health insurance companies alone set the backlog of voluntarily insured self-employed at just over € 1.5 billion. In total, there are even 4.5 billion euros including interest. A spokesman for the Gesamtverband der Krankenkassen said: „Often the premium arrears accumulate in five-digit height“. Because in addition to the actual arrears join the Säumniszuschläge. Many are overwhelmed by the debt burden. Therefore, according to media information, the surcharge should be minimized from five to one percent per month. Health insurance companies should not continue to be allowed to terminate.

Health insurers welcome bill
In the case of private health insurance and health insurance funds, the Federal Government's plans met with open ears. The Chairman of the Association of Private Health Insurance, Volker Leienbach welcomed the initiative of the Minister of Health. Finally, a law would be created that would actually help the debtors. Florin Lanz of the Gesamtverband der Krankenkassen (GKV) told the FAZ that it helps all sides if the health insurance funds are no longer forced to charge such high interest rates. (Sb)

Also read:
Zoll drives debts for health insurances
Health insurance: Non-payers cause losses
Private patients flee to the health insurance
Health insurance: additional contributions come again
Insureds owe health insurance 1.5 billion
Sanctions planned for defaulting additional contribution

Picture: Gerd Altmann