Gov't scraps collective health insurance discounts

Minister Tamara van Ark for Medical Care is putting an end to collective discounts on health insurance packages, she said in a letter to parliament. She wants to prevent some policyholders paying for the discounts of others, and believes that scrapping collective discounts will also lead to a clearer policy offer.

Collective discounts were created so that health insurers could make health-promoting agreements for specific groups, and return the cost savings in the form of a discount. In practice, however, constructions arose in which insurers first increase the price for all customers, and then give discount for certain groups, so-called cross-subsidization, the Minister. That resulted in, for example, healthy young people getting substantial discounts, while people with a chronic condition have to pay the full amount.

"The health insurance policy is for everyone, and that requires solidarity with each other. So that the collective discount for one person is not paid out of someone else's wallet. In addition, people must be able to compare their health insurance policy in a clear and fair way on price and content," Van Ark said.

The abolition of collective discounts does not affect collectives themselves. They can continue to exist. Discounts on additional insurance policies will also remain permitted.

This abolition will require a amendment to the law. Van Ark therefore expects that it will take effect on 1 January 2023 at the earliest.