Million surplus at Techniker health insurance

Techniker health insurance recorded surplus in the hundreds of millions

26/05/2011

While most statutory health insurance companies are currently more likely to draw attention with negative headlines, the Techniker Krankenkasse (TK) can report pleasing. The second largest German health insurance company generated 577 million euros in surplus last year - despite health care reform and considerable additional expenditure in the area of ​​medical services.

With a surplus of 577 million euros in 2011, the Techniker Krankenkasse is currently doing relatively well compared to the other statutory health insurance. In spite of the existing difficulties in the health care system, TK succeeded in generating a positive result last year as well. Service and waiver of additional contributions should have played a significant role in the fact that TK was also able to attract almost 300,000 new customers in 2010.

Techniker Krankenkasse registers millions in profit despite cost increases
With around 7.7 million policyholders, the Techniker Krankenkasse is currently the second largest health insurance in Germany. And while other health insurances are threatened by bankruptcy or have already had to close (see City BKK), TK was also able to generate a positive result last year. The Annual Report for 2010 shows a surplus of 577 million euros. 288.00 new customers were won and despite the increased expenses for the insured, the Techniker Krankenkasse was able to record a million-plus in 2010. The health insurance company spent an average of € 1,851 per insured person, an increase of 3.6 percent over the previous year. According to the annual report, there was a massive increase in costs of 7.5 per cent per insured, especially in the area of ​​hospital expenses. In the case of physicians in private practice, however, spending has fallen by 0.5 percent. In addition, the Techniker health insurance could benefit from the austerity measures in the drugs. The growth in drug spending per insured was reduced from 7.6 percent in 2009 to an increase of 1.6 percent in 2010.

Techniker health insurance relatively well placed
The Techniker Krankenkasse also performed particularly well on the administrative costs per member. Only 104 euros per insured spent the TK on administration and bureaucracy, which is about 24 percent below the nationwide average of statutory health insurance of 136 euros per capita. The Techniker Krankenkasse benefits not only from the renunciation of additional contributions but also because of its particularly efficient administrative apparatus. The associated increase in membership also helps to avoid additional contributions for the time being and to further reduce administrative costs per capita. So the Techniker Krankenkasse seems on a good way to achieve positive results in the coming years. The behavior following the bankruptcy of City BKK can also be taken as an indication of TK's good position. While other public health insurances came into the headlines with the attempts to fob off City BKK customers, the media reported from the outset on TK's willingness to accept admission and quoted Susanne Hertzer, head of the TK regional representation Berlin and Brandenburg, as saying: „Everyone who wants it will be accepted.“ (Fp)

Also read:
Techniker Krankenkasse discontinues Tarif TK-Privat
Health insurance: No merger of the TC and KKH alliance
AOK Bayern waives additional contribution in 2011
Technician health insurance website