PKV contribution increases of up to eight percent?

Do insured persons in private health insurance have to adjust to premium increases? Due to the global economic crisis, the interest rate development on the markets has plummeted. Ten out of the 46 private health insurance companies seem to have problems with fully securing the retirement provision. A nationwide contribution increase in private health insurance of up to eight percent could be the result in the future.

On everyone's lips are planned in the course of health care reform contributions and additional contributions of the statutory health insurance. In this context, the Federal Ministry of Health wants to facilitate the entry requirements for legally insured persons in the private health insurance (PKV). The private insurance providers lure thereby with an allegedly financially stable situation. But in the opinion of health economists, premium increases are no longer excluded even in private health insurance. The economic and financial crisis has severely shaken private health insurance in Germany. Contribution increases of up to eight percent are no longer excluded according to experts. Ten out of 46 private health insurance companies have problems meeting the promised interest rate for retirement provision, according to media reports.

The poor interest rate trend has consequences for the retirement provision within private health insurance
Private health insurance is also subject to the demographic change of our society. People are getting older and older, and health care is becoming increasingly important to people as they get older. This inevitably increases spending in the healthcare system, for private health insurance and statutory health insurance. The private health insurances, however, always bragged that, in contrast to the statutory health insurance companies, they would have an economically oriented system guaranteeing the insured persons' coverage and excluding high premium increases. But exactly this system makes the PKV currently hard to manage. Due to the economic crisis, the interest rate development is subject to strong fluctuations. At the moment, interest rates have reached a low point. As a result, the balance sheets of PKV are massively affected. This is especially noticeable in the provision for old age. The collapse of interest rates has forced insurers to use a portion of their regular pension contributions to their clients. In this way, the health insurance cover for older insured persons should always be maintained and affordable.

On the other hand, the provisions have to bear interest at a fixed rate. The upper limit of the interest rate is determined by the Federal Ministry of Finance. This is to prevent the companies with speculative interest calculations can make dishonest PKV lock offers. The current maximum interest rate has been around 3.5 percent for some time. But due to the extremely low interest rate development, insurers are currently receiving only around 2.5 percent through so-called government bonds. And this is exactly where the financial discrepancy arises, as private health insurance guarantees its members a return on their provisions of 3.5 percent. According to the economic newspaper „Financial Times Germany” At the moment, about ten private health insurance companies have problems meeting the promised interest rate. The only way out that seems ingenious would be a rate cut to a maximum of three percent. However, the lower calculation options would force insurance companies to revise their calculation bases. However, the retirement provisions are then no longer sufficient, so that all providers of private health insurance would have to switch to increase the contributions to ensure retirement coverage.

Private health insurance defends itself against a nationwide contribution increase
This encounters a strong defense against most competing PKV providers. Because actually one wants to score against the legal health insurance with lowest possible contributions and ostensibly better achievements. If the interest rate were lowered, all companies would be affected equally, regardless of their own financial situation. The consequences for private health insurance in Germany would be incalculable, because all would have to gradually increase their contributions. Although the black-yellow federal government of the private health insurance plans numerous benefits in the coming year in the prospect, the private health insurance would increase their contributions nationwide. The ailing PKV providers, however, want to prevent in their turn by all means that only they alone must increase the membership fees. For them, that would mean a massive cutback in competition. Therefore, if at all, the contribution rate should be increased for all providers.

Contribution increases in 2012?
For the coming year, however, no contribution increases are expected, as the calculations and contribution rates have already been approved. If it should come to an increase, the private health insurance companies would be affected only in 2012. But in order to keep the entry-level tariffs low, it would be possible for older insureds to be affected. Because these can hardly defend themselves, for example, by a tariff change and would have to accept the increases almost to the benefit of the younger.

Over the last ten years, contributions have risen steadily
According to a report from Morgen & Morgen in May this year, the contributions of private health insurances have risen in the last ten years. For example, the 6 different tariffs of the German Ring have risen on average by 3.4 percent in the last 10 years. In the Pax family welfare insurance premiums of the past ten years have risen on average by 6.7 percent and the Mannheimer by 6.9 percent (including all tariffs). This shows that premium increases in private health insurance are by no means excluded.

PKV hopes for a strong change from GKV to PKV
The private health insurance association is currently trying hard not to bring the situation to a boil. It is pointed out that interest rates have been stable in recent years, with interest rates at 4.2% last year. In addition, by the numerous planned „Gifts“ the Federal Government expects new members from the GKV. For from 2011, the entry requirements for private health insurance for above-average earning employees will be greatly facilitated, which will lead to a wandering between the statutory health insurance for private health insurance. This massively weakens the SHI and promotes PKV.

Special right of termination in case of premium increase only little effective
Customers who are affected by an increase in premium can, in the course of this, insist on their special right of termination. But such a change is associated with numerous hurdles. Because when you switch to another provider, the accrued age provisions can not be taken. In addition, many providers require a renewed health check, so that it is quite possible that the contributions will not be cheaper in a change. In addition, formerly insured persons can not make their way back to the SHI, because whoever has changed once will find it difficult to return to the statutory health insurance. That is only too understandable, since the statutory health insurance understands itself as a solidarity community, which insures all humans independently of the health condition and income. Under these circumstances, affected employees should think carefully about switching to private health insurance next year. Also because the private health insurance does not know special benefits such as family reinsurance or mother-child cures. Because with the private health insurance also children must be separately health insurance. Under certain circumstances, then the contributions are higher than previously in the statutory health insurance. (sb, 24.10.2010)

Also read:
Increase in dissatisfaction with private health insurances
Contribution increases of the private health insurance companies
Federal Government: billions for the PKV
Simple change planned in the PKV

Picture: Gerd Altmann