City BKK collapse due to additional contribution

The company health insurance City BKK will close on the first of July 2011

04/05/2011

The City BKK will be closed as reported on the first of July. The first closure of a fund after the introduction of the health fund has shown that the competition has now also flared up between the statutory health insurance funds. While insured persons are well protected in this case and insurance coverage is guaranteed, there is a legitimate question of where competition in the healthcare sector is still going. With the City BKK it has hit a relatively small cash register with only about 168,000 members. What happens when a large health insurance company announces an imminent bankruptcy and must therefore close?

Supplementary contributions are apparently no way out
Supplementary contributions can apparently not relieve the health insurance companies from a financial emergency. Most recently, the City BKK had to ask for an additional lump sum of 15 euros per member in order to stay fit for business at all. But just that additional contribution has heralded the final end, because especially the better earners have turned their back on the cash register after the introduction. Remained primarily elderly or chronically ill members whose supply costs rose sharply through numerous treatments and examinations. In addition, most insured people lived in large cities such as Hamburg or Berlin, where the cost of medical treatment is usually higher than in rural areas.

Why should insured persons also stay with a health insurance company, which requires additional monthly contributions of € 180 per month to the regular insurance premiums, if other health insurances also offer an identical range of services? The closure should therefore be a warning to all funds that raise additional contributions out of necessity. At least as long as the majority of the other funds are spared from such an additional contribution. Last year, around half a million insured people turned their backs on their cash register and moved to another health fund. The AOK and the Techniker Krankenkasse have benefited from the changes.

Rescue fund for distressed health insurance companies?
When it became known last year that in addition to the City BKK and the Joint Health Insurance Cologne (GBK) and the BKK health professionals are in massive financial difficulties, thought the Federal Association of health insurance funds loudly about setting up a state rescue fund, similar to how it was during the financial crisis was at the banks. Because with the coffers the fear of the domino effect goes around. If a fund closes in conjunction, the others have to step in for the costs so that the insurance cover is maintained. If only a small cash register is affected, the costs go into the millions, but are nevertheless reasonably manageable. If a major health insurance fund has to close down and there are only a few funds left in the healthcare system, this could quickly lead to a far-reaching crisis in the healthcare system. Because if the other funds have to pay the cost of an insolvent health insurance, this could very quickly create their own financial hardships. In such a case, only a state rescue fund in the form of a rescue fund could cushion a crisis. Therefore, the question should be allowed as to whether a health care system like ours should actually allow for fierce competition. Due to the demographic change and the constantly rising costs in the health service, the periods of the statutory health insurance will definitely not get better. For a long time now, health economists have called for a profound reform in the direction of solidarity citizens' insurance. Also read: Health Insurance City BKK is closed. (Sb)

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