Health insurance premiums will rise next year but less than initially expected

Health insurance premiums will see a significant rise in 2024, but the increase is less than initially expected. A combination of data collected by price comparison website Geld.nl and NOS shows that 18 health insurers have now announced their 2024 premiums for at least one basic health insurance policy. Of the 29 different packages analyzed, the average monthly premiums will rise by an average of 5.2 percent, taking the total from just below 142 euros to 149.23 euros per month.

The outgoing Cabinet predicted an average annual premium of 1,792 euros for basic health insurance when the proposed budget was released on Prinsjesdag in September. The prediction cautioned that consumers should expect to spend about 150 euros monthly, which is 12 euros more than this year.

Premium increases vary as health insurers independently set their rates. They have until November 12 to announce these premiums. Geld.nl's average calculation is based on 17 insurers' announcements as of Friday. NOS reported only on the four major insurers, including CZ, which released information about their premiums after Geld.nl published its report.

Amanda Bulthuis, a financial and insurance expert at Geld.nl, noted significant differences in premium increases across insurers. For instance, major insurers VGZ and Menzis are raising premiums by 5 to 6 euros per month, while Zilveren Kruis will increase its premiums by 8.5 to 9 euros.

Geld.nl also pointed out that the actual premium increases are lower than the Cabinet's predictions on Budget Day. “The fact that health insurers are able to keep their premiums lower is mainly because they use part of the reserves,” Bulthuis explained.

Xander Koolman, a health economist at Vrije Universiteit in Amsterdam, believes this year's premiums were higher than necessary, allowing insurers to limit increases for the coming year. "In other words, the insurers made more margin than they expected, which means that premiums don't need to increase as much this year,” he explained to NOS.

Koolman pointed out that the main reason for the increases is higher labor costs, which form a significant portion of healthcare expenses. Healthcare workers received a 5 percent salary increase in October, with two additional 5 percent raises planned for next year.

On Tuesday, it was reported that 61 percent of Netherlands residents worry about whether they can still afford their premiums next year, due to the rise in health insurance costs.

Basic health insurance premium increases in 2024, per insurer