Health insurer CZ announces 7.5 pct. premium increase

Health insurer CZ is increasing the premiums for its basic health insurance by 7.5 percent, or 7.90 euros. The total basic health insurance premium for 2017 amounts to 112.85 euros, the insurer annoucned on Wednesday, ANP reports.

According to CZ, the premium comes in below cost. The insurer expects to spend an average of 125.20 euros per insured person next year. CZ will make up the difference from its own reserves, for which CZ put aside 420 million euros. That is 40 percent of the insurer's reserves - CZ's weallth minus the financial buffeer it has to keep according to law.

"Using more of our reserve for 2017 would be very unwise", CEO Wim van Meeren said in a statement. "Then our premium would increase the following year, in 2018, by more than 20 percent."

According to CZ, the premium has to increase because the basic health insurance package expanded. The availability of new and more expensive drugs also played a roll in the increase. The insurer expects that healthcare costs will continue to increase in the coming years by 3 or 4 percent per year.

In September DSW was the first health insurer to announce its premium increase - an increase of 9.25 euros to 108 euros.