Is the health insurance City-BKK broke?

Is the first health insurance company facing insolvency? The Federal Ministry of Health plans to close the "City BKK" as early as September 1, 2010.

(12.06.2010) Following the introduction of the health fund, the first health insurance is very likely to be closed. The BKK City have reported a threat of bankruptcy, as confirmed by the Federal Insurance Office. However, according to the magazine Der Spiegel, the Federal Insurance Office and the Federal Ministry of Health have already agreed to close the City BKK by the first of September 2010. The health insurance would have accumulated in 2009 and 2010, a mountain of debt of a whopping 50 million euros. However, the Federal Ministry of Health only said that City BKK had reported a threat of bankruptcy. Such a message is required by law to the health insurance companies. As the "Handelsblatt" currently reports, the "City BKK" would be alone with problem, even another statutory health insurance would have reported a looming bankruptcy. Already in the last week there were reports that also the DAK would stand shortly before a bankruptcy, this message was denied in retrospect by the DAK.

According to "Spiegel", the Federal Insurance Office and the Federal Ministry of Health have already agreed on a closure of the City BKK. In the City BKK would be many elderly and chronically ill insured, so that no other health insurance agreed to agree to a merger. According to Spiegel also another health insurance company would have announced a threatening bankruptcy: The "BKK Heilberufe" would also have considerable financial worries.

The chairman of the board of the BKK Baden-Württemberg, Konrad Ehing, expects that the costs for a closure of the City BKK could amount to around 150 million. These costs would then have to be allocated to the BKK system. So would have to take over the large company health insurance each 15 million euros, which would have to be paid by the revenue. The association chief fears therefore that a so-called "Dominoeffekt" can develop and further health insurance companies could threaten a bankruptcy. Next Thursday, representatives of the BKK want´s get together and negotiate a possible rescue of the "City BKK". For this, the BKK system would have to provide around 50 million euros.

The health system is facing a deficit of about 11 billion euros next year. How these debts are to be removed, is so far unclear, since the allocations from the health fund the coffers are not sufficient. Some health insurance companies are already levying additional contributions from their insured persons in order to make up for deficits. When a statutory health insurance company closes, other funds are required to take over the members. This results in further financial problems for the funds. (Sb)