Crisis mood at the DAK staffing threatens

Crisis mood at the German employee health insurance: Due to financial difficulties threatened a massive reduction in staff. The Federal Insurance Office, meanwhile, urges the correction of the deficit of the DAK. Higher additional contributions could threaten.

25/03/2011

In view of the financial problems of the German Employees Health Insurance (DAK), the Federal Insurance Office (BVA) is forced to intervene. The BVA urges a reorganization of the third largest German health insurance. There are now threats of cuts in the approx. 16,000 employees and possibly higher additional contributions. According to the BVA, savings in benefits would also be conceivable.

Problems of the DAK have been known for some time
For a long time, the media have reported significant financial problems at the DAK. Already last year, the DAK had demanded from its members an additional contribution of eight euros in order to get the deficit under control. But by the end of the year the financial reserves of the health insurance were apparently almost exhausted. As the „Financial Times Germany“ reported, the reserves of the DAK at the end of 2010, only 33 million euros - the legal requirements, it should have been a good 352 million euros. Although the BVA has no direct authority to direct, but in view of the tight financial situation, the higher federal authority was forced to intervene. In a letter of application, the BVA called on the DAK to raise the additional contribution or to reduce administrative or staff costs in order to remedy the deficit. Many insured now wonder whether the health insurance increases the already existing additional contribution. From the central let it announced on today's Friday immediately, one plans no increase of the additional contribution. Finally, it is assumed that the „financial situation of the DAK develop positively“. By the end of the year, one expected a surplus of about 200 million euros, as a spokesman for the fund explained. Last year, a surplus of about 62 million was achieved. By the end of the year, the budget has been approved by the BVA. Until then, you stand with the authority in one „intensive exchange“.

Health insurance affected by massive membership losses
The financial distress at the third largest German health insurance company, causes concern in the industry. The fact that the DAK despite the collected additional contributions, the bankruptcy could only barely avoid, raises some questions on the management of impending deficits. The path to reorganizing finances now proposed by the BVA could also be the wrong approach. The deficit of the DAK is due, among other things, to the fact that around 500,000 predominantly young, healthy members left DAK and only 200,000 new customers could be won. At the moment there is a kind of negative selection at the DAK. In the DAK, elderly people who are currently suffering from health problems and who are currently suffering from health insurance tend to stay on the rise, which dramatically increases the costs of medical services. The additional contribution made by the DAK to cover the funding gap last year turned out to be rather counterproductive, as countless members left the DAK due to the additional eight euros a month. In addition, the additional contribution from numerous insured was not paid, so that the DAK has recently passed the data of 220,000 defaulters to the main customs offices, so they demand the outstanding contributions. The debtors threatened as the last step, the seizure of salary or pension, said the DAK in early March.

Further job cuts planned at DAK
But to cover the financial deficit, the current additional contributions of the DAK according to reports of the „Financial Times Germany“ apparently not out. DAK spokesman Jörg Bodanowitz, however, emphasized that 650 full-time jobs were recently deleted and the number of employees in the context of the DAK spokesman Jörg Bodanowitz „normal fluctuation“ further reduced. The DAK boss Herbert Rebscher spoke to the „Berlin newspaper“ last week already saw a significant downsizing and stated that it may also be necessary to close individual offices. Overall, since 2004 already around 3,000 jobs at the DAK „degraded socially acceptable“ and this year will continue to save staff, stressed the DAK chief. However, the DAK did not want to confirm the financial problems, pointing to an operating surplus of € 62 million in 2010 and an expected surplus of around € 200 million for 2011. However, the operating surplus last year was offset by subsequent corrections to the disease-oriented financial equalization turned into a deficit of 79 million, the DAK does not mention at this point.

Serious problem by collecting additional contributions?
The DAK seems to be in a kind of vicious circle where hundreds of thousands of members have left health insurance because of the additional contribution, and then the deficit has continued to rise, forcing the DAK to reduce its existing staff and offices. With the downsizing and closing down of offices, the service for the members threatens to become significantly worse, which could also lead to loss of members and so the financial deficit would continue to increase. This would require higher additional contributions to compensate for the deficit and the cycle would continue. In the end, the continuation of insurance threatens to fail due to lack of liquidity. However, the DAK as the third largest German health insurance company can not simply go broke, as the 4.5 million paying members and just under six million insured overall could not easily be accommodated in another insurance. Here would come to bear, what the critical expert Rolf Stuppardt of the Federal Association of the guilds had already suspected last year: Some health insurance companies have through mergers today a systemically important size (similar to the banking crisis) achieved, so that the state in the event of a possible bankruptcy for Intervention is forced.

DAK denies higher additional contributions
The DAK was upset in the face of the current media reports and stressed that they have no basis. Also have the BVA in his cover letter „formulated somewhat misleading“, because „the BVA is not our superior authority“, stressed the DAK spokesman Jörg Bodanowitz. And while in terms of job cuts and the DAK speaks openly about reducing the staff, think „nobody (...) to increase the additional contribution“, Jörg Bodanowitz emphasized to the „Hamburger Abendblatt“. In view of the painful experiences with the additional contributions in the past year, the DAK is obviously sensitized and particularly endeavors to avoid higher additional contributions for now. Meanwhile, the BVA has responded to the current media reports and stressed that the DAK is neither threatened by bankruptcy nor one Request by the BVA to increase the additional contribution. For the year 2011, the DAK had submitted a budget, which had not been objected to by the Kassenaufsicht and provided for the creation of sufficient reserves, corrected the BVA different press articles. (Fp)

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Image: Benjamin Klack