Contributor PKV increases massively tariffs

PKV contributions in 2011 will be massively increased: blaming it should be non-payers

05/12/2011

Also in the coming year, the contributions of the private health insurance (PKV) will rise sharply. Some providers want to increase their contributions by 30 to 40 percent. According to the Association of Private Health Insurance (PKV) more than 140,000 private patients would not pay their contributions. The contribution losses would be one reason for the contribution increases. The industry does not mention that the problem arose especially through lock-offers.

Non-payers almost doubled
Since 2010, the losses have almost doubled by defaulting private insurance. In the middle of 2011, the 40 German private health insurers counted around 142800 non-payer. In this group are private patients who paid no contributions for at least three months. A spokesman for the association of private health insurance companies estimated the financial loss of all private health insurance companies that had been incurred until then at around 500 million euros. The largest private health insurance company Debeka is currently forecasting a revenue loss of around 554 million euros. As late as 2010 (June 30), the industry had about 120,800 offending members. According to the association, the damage was about 289 million euros. In Germany, almost nine million people are fully private health insurance. In contrast, about 70 million citizens in a statutory health insurance compulsorily.

Defaulters are not just a problem of private insurance since today. When compulsory health insurance was introduced for all persons living in Germany in 2009, non-solvent small businesses also had to take out health insurance, which preferred to save their health insurance premiums, especially in the early days of self-employment. For private insurers, this meant that they would no longer be able to terminate or refuse private customers, even if the contributions were not paid. This means that even if the debtor pays no more premiums, so at least the basic and emergency care for the non-payer remains.

Cheap fares caused large group of non-payers
The problem is, however, homemade. Numerous providers advertised excessively with so-called low-cost and long-term tariffs, which partly paid out contributions of less than one hundred euros. So many concluded a discount rate, although they would actually be better off in the legal system. This is also noticeable in comparison. For example, those companies that aggressively flooded the insurance market during the past year with lock offers are suffering comparatively strongly. Accordingly, many non-payers are found in the Generali subsidiary Central or the Ergo subsidiary DKV. Both insurance companies have learned from the past and said goodbye to the low price segment. The new customer model to advertise with PKV low tariffs new members to then offer next higher tariffs, did not work, as many insurers complain today. To make matters worse, brokerage commissions reached ever higher dimensions. The commissions as part of the problem are now clearly minimized again.

Tariff increases with up to 40 percent
However, the old and existing customers have the disadvantage, because they have to expect at the end of the year with strong increases in their contributions in the individual tariffs. For example, PKV Central announced that premiums in individual tariffs could be raised by up to 40 percent. Other providers such as the ARAG health insurance announce an increase of up to 30 percent. This affects above all the so-called „E-tariff“. But other providers will follow suit with a time lag in similar dimensions.

Hardly any opportunities to escape the contribution increases
Those affected hardly have any opportunities to escape price increases. Using different methods, the industry tries to prevent customers from switching. The main argument against the supplier change is the refusal of the old offerer to give the accumulated age reserves. This will be the insured first „carved around the ears“, if this announces a change. Thus, the insured person essentially loses the provisions for old age. However, anyone who is not afraid to make a change is faced with another problem. The new provider also requires a health check. After that, the new tariff is oriented. For those who are already middle or older, the test is likely to be more negative than a few years ago. So it can happen that the new tariff is even more expensive than the one that you actually wanted to escape. A change is virtually impossible, without high losses would be the result. Critics claim that such a system has secured the private health insurance to avoid larger membership migrations. The only possibility is then only a change of fare with much less health services and / or higher deductibles. Especially in old age, this decision can also be costly, as doctor visits and hospital stays add up with age. If a provider persistently refuses to agree to a tariff change, the Ombudsman appointed specifically for PKV should be called. The latter is trying to establish an agreement between the parties in the court of first instance. Most of the legal provisions are very limited, so that sufferers often have to live with the higher contributions. (Sb)

Also read:
Private health insurance: Worth a change?
PKV introductory rates often offer less than the GKV
PKV new business is booming: at the expense of the GKV
Lower PKV commissions planned

Picture: Ronny Richert