DAK job cuts through additional contributions

Loss of membership through additional contributions: Health insurance DAK announces job cuts

14/03/2011

The collection of additional contributions was for the German employee health insurance (DAK) last year, the last resort to avert the looming financial imbalance. Since January 2010, the insured members of the DAK had to pay eight euros per month from their own pocket. But the result was different than hoped.

Around half a million insured have also left the DAK because of the additional contributions. Although at the same time 200,000 new customers could be won, but in the end there is a loss of members of more than 300,000 insured. The desired reorganization of the finances could not be achieved with the help of additional contributions. Due to subsequent corrections to the disease-oriented financial equalization, the DAK had a deficit of 79 million euros in 2010 instead of a regular surplus of 62 million euros.

Closure of offices and job cuts at the DAK
Since the DAK has over 300,000 fewer members than last year, threatens according to the DAK chief Herbert Rebscher against the „Berlin newspaper“ now a significant job cuts. Also, individual offices may have to be closed, according to Rebscher. Since 2004, around 3,000 jobs have been at DAK „degraded socially acceptable“ has been and continue to save staff this year, said the DAK chief. Concrete figures did not want to call Rebscher meanwhile, however, he was optimistic and announced in the current year, an estimated surplus of nearly 200 million euros. The DAK is in financial distress is probably also one of the reasons that against insured who have not previously paid their additional contributions, collection procedures were initiated. The DAK has forwarded the data of about 220,000 members who are overdue with their additional contributions more than six months in arrears, to the main customs offices, so that they collect the money from the customers. In the worst case, those threatened with salary garnishment. However, Rebscher emphasized that this was standard practice and charged the defaulting payers at least 20 euros. Also put „also the main customs offices, which we have commissioned with the collection procedures, (...) their expenses to the defaulting members into account“, said Rebscher.

Vicious circle of additional contributions
The current announcements for job losses at the DAK illustrate the vicious circle that can develop through the collection of additional contributions. Hundreds of thousands of members leave the corresponding health insurance, the health insurance companies can then no longer keep their existing staff and their offices by the reduced income. This is followed by downsizing and the closure of offices. As a result, the service for the members of the affected funds is significantly worse and threatened further loss of members and a renewed financial deficit, which can be compensated again only by the levy of additional contributions. Thus, the respective health insurance companies are in a downward trend that is difficult to break. Moreover, if other incalculable factors, such as the subsequent corrections to the disease-oriented financial equalization, further exacerbate the financial situation of the health insurances, few will be able to rehabilitate themselves on their own. (Fp)

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Picture: Gerd Altmann