Imminent bankruptcy of City BKK

Will the City BKK be closed??

14.04.2011

According to reports of the Handelsblatt, the company health insurance company City BKK is on the brink of closure. The newspaper reported that the Federal Insurance Office BVA and the Federal Association of Statutory Health Insurance Funds (GKV) are in doubt about the positive business results. A decision as to whether and when a closure will be made will depend crucially on the financial situation of the funds in the first quarter of this year. In circles of the health insurance companies one tends now rather more to a closure.

15 Euro additional contribution at the City BKK
Already in the spring of last year, the City BKK had alerted the supervisory authorities to a critical financial position. As a result, the health insurance company levied an additional contribution of 8 euros from its insured persons. Since this additional contribution was not sufficient, the fund raised the additional contribution in January 2011 to 15 euros per month. Due to the additional contributions, the fund had to fight but with a huge membership loss. Last year alone, around 12,000 members left the BKK.

50 million debts at City BKK?
In the City BKK are about 200,000 people health insurance. According to unconfirmed reports, the City BKK has accumulated a debt of around 50 million euros. Because of this, the association of company health insurance funds had in early November 2010 City BKK prescribed a strict recovery plan. If necessary, the ailing fund could also take a relief fund of around 40 million euros. Since then, all steps to reorganize have been monitored by the Federal Insurance Office, the Federal Association of Statutory Health Insurance Funds and independent consultants. So far, the financial resources have not been used. However, a reduction in staff or further austerity measures can not be ruled out. Crucial now is the result of the first quarter. The results will be available in May at the latest. Then decide whether the cashier was successful in the renovation or whether a closure is pending.

Members are also insured in case of bankruptcy
The members of the City BKK do not lose their health insurance coverage even if the fund is closed. If the health insurance company has to be closed, the other company funds are obliged to accept the City BKK members. Unfinished treatments would continue to be funded.

The closure of a health insurance fund entails an incalculable risk for other health insurance funds. Because the debt burden left behind must be taken over by the other funds in case of insolvency. This obligation can again lead to financial shortages. A snowball effect and thus further bankruptcies threaten. (Sb)

Read on:
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