Hartz IV Debt relief for private insured

Ministry of Health agrees with the Association of Private Health Insurance on a debt relief for Hartz IV recipients

18/08/2011

Beneficiaries of Hartz IV benefits should be forgiven debts to the private health insurance. In return, the Federal Ministry of Health promised to have the contributions transferred directly from the service providers (Jobcenter) in the future. The tips of the Association of private funds and the Ministry of Health had agreed today.

Many former self-employed people, who fell into the Hartz IV trap, for example due to the failure of their business idea, are insured despite being in need of a personal health insurance. For the way into the statutory health insurance is denied even if the insured becomes unemployed. The job centers paid in the past only the share of statutory health insurance. Basic rates for private health insurance are usually twice as expensive. The affected persons therefore had no choice but to pay the contributions from the unemployment benefit II standard rates. But as this is hardly enough for a living, many were indebted to both ears. In the past, the job centers only took over a partial amount of 131 euros per month. The remaining average 150 euros had to settle the unemployed insured person from the standard rate.

Remission of debts in the private health insurance
According to information of the newspaper „Tagesspiegel“ Hartz IV recipients are to be forgiven the debts of the private health insurance (PKV). In future, the Job Centers will transfer the monthly contributions of the contributing debtor. Such an agreement was concluded after a meeting of the Federal Ministry of Health with the umbrella association of private health insurances. As it was said, the measure should be prevented in the future that „Debtors instead of health insurance, use funds elsewhere“. Already at the end of August, the legislative changes in the Federal Cabinet are to be passed.

Legacies from times of the black-red coalition
The legal loophole still existed in the days of the black-red coalition. At that time, the coalition could not agree on a uniform health care reform. The issue was open to unemployed private insured a back door to public health insurance. But this was the top association of the statutory health insurance very critical. Because thus the health insurance companies would have to take over always insured, if these Hartz achievements requested. On the other hand, the private insurance companies refused to minimize the contribution to the unemployed to the extent that it would correspond to the minimum contribution of the statutory. In any case, there would have been no coverage gap. So you put off the debacle on those affected, which accumulated in the total amount of several million euros of debt.

Federal Social Court put a stop to illegal practice
At the beginning of 2011, the Federal Social Court put a stop to this practice. Several people had filed complaints with the social courts, each of which ruled differently. The Federal Social Court then concluded that the contributions of private health insurance in the full amount of a base rate must be reimbursed. Basic rates are based on the service catalog of the statutory health insurance funds and were adopted in the course of the health care reform at that time. However, the judges left open what should happen to the old debts. Retroactive payments were only received by those who worked extensively with unemployed magazines „gegen-hartz.de“ informed and filed a protest against the partial reimbursement. All others went out empty and had to even deal with additional dunning debt.

This agreement became one „unworthy condition of those affected ended“, According to a recent announcement by the Ministry of Health. Private insurers were also satisfied for the time being. There you have signaled, „that the individual member companies make a voluntary debt waiver“. Those who then switch back to employment or try a new self-employment are no longer faced with a hard to handle mountain of debt. According to the PKV, around 8,500 health insured persons are currently affected by this new regulation. The Association of Private Funds had previously announced a possible debt cancellation in advance, if the Federal Government stops the ongoing shortfall in coverage and transfers the contributions directly to the insurers.

Left criticizes agreement as unfair
Criticism came from the left. This called the agreement as „lazy compromise“. Finally, private insured Hartz IV recipients „to pay for the mistakes of politics“. „These unjustified charges must be retroactively reimbursed to all privately insured Hartz IV recipients, "Martina Bunge, of the Health Committee, demanded. „The agreed debt relief of the private insurance for defaulters is not a solution, but mockery and ridicule for those who have somehow paid the contributions and now possibly have debts with friends or relatives.“

Health insurance companies file a lawsuit?
Since from now on, the private insured get the full contributions from the state reimbursed, call the statutory health insurance also after a full takeover of their contributions. Because the cash registers only require a capped contribution rate as soon as someone receives benefits under SGB II. From this direction, the coalition could face legal action in the courts. (Sb)

Read about Hartz IV:
Hartz IV: Health insurance companies have to check 1 Euro jobs
Hartz IV: Debt through health insurance
Exemption of additional contributions from Hartz IV
Consequences of deleting the additional demand in Hartz IV
Federal agency ignores PKV judgment in Hartz IV

Picture: Dr. Klaus-Uwe Gerhardt