Warning against PKV low rates

Analyst house warns against cheap starter rates of private health insurance

07/13/2011

As part of a survey for the Frankfurter Allgemeine Zeitung, the analysis house Franke & Bornberg comes to the conclusion that is to warn against the entry-level tariffs of private health insurance (PKV). There is hardly a private insurer seeking competition without the particularly cost-effective lock offers. But the benefits of the tariffs are often significantly below the performance standards of the statutory health insurance (SHI) and the insured must also expect above-average contribution increases, said the CEO of the analysis house, Michael Franke.

Some private health insurance companies earn between 75 and 80 percent of their new business at the so-called starter rates, according to results of the survey by Franke & Bornberg. Michael Franke emphasized that he was advertising the new customers with the cheap deals for „an absurdity“ hold, because actually „would have to bold a risk stamp on it“ his. But „Instead, some insurers aggressively advertise for customers“, so the criticism of the expert. Not only the insufficient service, but also the „preprogrammed“ Disproportionate contribution increases are, according to Michael Franke a clear reason to discourage the cheap entry tariffs of private health insurance. In addition, the expert also assessed their distribution over the Internet as extremely problematic, since the health insurance to the „most insurance-intensive insurance“ and therefore a detailed information should be provided by a specialist.

Criticism of the range of services of the PKV Einsteigertarierarife
The company Franke & Bornberg has come in the context of his investigation on numerous critical issues in the so-called starter rates of private health insurance. According to the managing director Michael Franke, on the one hand, the supply of services inadequate for private health insurance is to be criticized. The introductory tariffs of private health insurance generally cover significantly less than the usual 60 percent for services such as psychotherapies, rehabilitation measures, cures, alternative medicine treatments, outpatient transports and artificial insemination. The same applies according to the expert for the two-bed rooms in the hospital and the reimbursement of dentures. For example, the one-off tariffs, which are cheaper by up to two-thirds, are usually not what customers expect from a private health insurance company, explained Michael Franke. In addition, the expert complained about the distribution of such PKV Einsteigertigertarife over the Internet, because this would not meet the need for advice in the conclusion of health insurance. Many insured persons are not sure even after the conclusion of the insurance, which costs they would have to bear in the event of illness, criticized Franke. In addition, some physicians in PKV patients usually do not assume a limited scope of services and therefore unknowingly recommend very costly treatments for patients.

Disproportionate contribution increases already foreseeable
According to Franke & Bornberg, another particularly critical point in the low-priced offers of private health insurances is that disproportionately high premiums are preprogrammed at the enormously low entry-level tariffs. Because these are exclusive as lock offers „for a specific need situation“ such as, for example, young, healthy start-ups. The extremely tight calculation allowed from the outset no goodwill and significant contribution increases are already foreseeable, Michael Franke stressed. But those who have once turned their back on the statutory health insurance can not return even with increasing contributions in private health insurance. Therefore, in the opinion of the expert, a change of policy should generally be thoroughly considered and by no means made on the basis of cheap offers. However, most private health insurance companies are only too happy to use the low-priced one-stop-shop rates in order to aggressively recruit new customers.

Many private health insurance companies attract with cheap offers
A large part of the examined insurance companies had worked with such tariffs, so the result of Franke & Bornberg. Only the Debeka, the Hallesche, the VGH and the Universa therefore had no typical entry-level tariff among the 30 insurers analyzed. Basic rates, which got along with very little restrictions, there was the insurance Old Oldenburg, the Concordia and LVM, Franke & Bornberg on. The other examined private health insurance companies all relied more or less strongly on the low tariffs as lock offers for new customers. However, the first insurance now seems to initiate a counter-development. Thus, the belonging to the Ergo Group DKV has already announced its abolish cheap Einsteigertarif again, because this „not the claim you should have for private health insurance“, enough, said DKV CEO Clemens Muth. The head of the DKV emphasized that private health insurance companies are also responsible, „To say to people on low incomes that they may be better off in the GKV“. (Fp)

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