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A metaphor for health insurance costs, visualised by piggy bank at the doctor.
A metaphor for health insurance costs, visualised by piggy bank at the doctor. - Credit: 401(K) 2012 / Flickr - License: CC-BY-SA
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DSW
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Ministry of Public Health Welfare and Sports
Aad de Groot
Tuesday, 22 September 2020 - 07:30
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Health insurer DSW to raise rates to €124.50 per month

The first health insurer has announced the premium for its basic health insurance package for next year. DSW is increasing premiums by 6.50 euros to 124.50 euros per month - slightly more than the 5 euros increase to 123 euros that the government estimated on Budget Day, NOS reports.

According to DSW director Aad de Groot, the reason the premium increase is slightly higher than the government said, is twofold. Firstly, DSW is dipping into its own reserves this year to limit the premium increase, costing the insurer 2 euros per customer per month. But there is not enough reserves to do that again next year. "That is why we are moving towards a cost-effective premium," De Groot said to the broadcaster.

Secondly, the parliamentary elections are coming up next year. "I also think that the Ministry of Public Health is sketching a very rosy picture. Every election year, we see that the Ministry predicts an increase in premiums that is lower than what the health insurers come with. We also saw that four years ago."

For people with low incomes, the increase in the health insurance premium will be partly offset by a higher healthcare allowance next year. The maximum allowance is increasing by 3.66 euros per month for single people and by 8.25 for multi-person households next year.

According to DSW, the premium increase was mainly due to higher wages for care workers and higher prices, for example on expensive medicines. The coronavirus crisis had barely any effect on the premium. "We assume that in terms of healthcare costs for 2020 we will be at approximately the level we had already expected in advance. That is because the additional costs of corona are actually offset by the lower costs of corona," De Groot said to NOS.

When the pandemic first hit the Netherlands, it brought regular care to an almost complete halt for months.

DSW is a relatively small health insurer and is always the first to announce their premium for the coming year. The other health insurers have until November 12 to announce their premiums.

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