Bad image for private health insurance

The PKV had to fight this year with many negative headlines

22/08/2012

So far this year is not a good year for private health insurance. In the public debate, the insurance companies give a bad picture. It is already becoming apparent that the premiums will increase again in numerous tariffs at the turn of the year. Especially older private insured must spend some enormous sums of money for their health insurance. Other studies have shown that some private rates even contain less benefits than the statutory health insurance and even severe performance weaknesses.

Already at the beginning of the year, the industry had to oppose the accusation that many insured people would leave the PKV in droves because they were dissatisfied with the benefits and the contribution adjustments. The PR machinery was running at full speed and the insurance companies were quick to point out that many young people leave the private health insurance scheme because they enter the workforce or former self-employed persons if they find a job that requires social insurance coverage. But the fact that the premiums in many tariffs have skyrocketed, could also be responsible. Although in the last 12 years, the contributions have risen on average only by 4 percent, however, experienced some contracts adjustments of up to 60 percent.

The greed for new customer business caused a bad image
The main reason for these premium increases is the greed of the insurance agents for quick financial statements and high commissions. For example, the documentary showed „The insurance agent“, like employees of the now insolvent „MEG sales“ advertise new customers with questionable means. The insurers take the dubious machinations of the representatives often in order to achieve the highest possible number of new customers. But it is forgotten that in addition to the increase in new customers and the lifelong commitment comes first. These responsibilities have overly neglected private health insurance over their clients in recent years. The result is dissatisfied customers, who are often after the „good old days in the statutory health insurance“ yearn.

Entry fees attracted more dissatisfied customers
Another strategy was to attract new private customers via low-cost entry-level tariffs. These should then be transferred after a while then in the high-quality tariffs. It is this strategy that has given the industry another negative in the public debate. The victims are the customers because their insurance companies built up the calculations on hopes. The new customers see themselves partly horrendous premium designs delivered and these can sometimes no longer pay.

In order to put more responsibility on representatives, the Federal Government has approved a law that allows mediators to be held responsible for their contracts for at least five years from April 1, 2012. However, a reduction in brokerage premiums failed, even though many insurers consider it too high.

System question is asked
Due to the sometimes dubious machinations and the constant adjustment of contributions, the industry sees itself exposed to an ever increasing number of critics, who now pose the systemic question. They demand the end of the juxtaposed systems. Instead, a solidary citizens' insurance should be introduced, in which all German citizens are equally insured and pay according to their income contributions. But so far, these demands are too strong, the lobby is too anchored in the ranks of the black-yellow coalition. The systemic question will probably not come to the table until the topic becomes a campaign issue. Until then, many more customers will take private health insurance. (Sb)

Read about:
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PKV: For non-payers only emergency care
Health insurance: Non-payers cause losses
Private patients flee to the health insurance
Health insurance: additional contributions come again
Complaints about increase in PKV contributions
Health insurance: What will change in 2012?

Picture: Gerd Altmann / Gerold Meiners