Rising costs are increasingly affecting numerous exclusive health insurance policies.
Over eight point five million individuals with personal health insurance in Germany may encounter substantial premium hikes in the upcoming year. The majority of these policyholders, approximately two out of three, can anticipate an average increase of 18%. More extreme increases, such as 30%, are not rare occurrences. Around two-thirds of the 8.7 million fully insured individuals will be impacted by these adjustments. Policyholders will be notified of the new rates within the next few weeks. Most service providers will implement these changes as of January 1st, although some, like DKV, will do so as late as April 1st.
The source of this modification, according to the "Süddeutsche Zeitung", is the elevated expenditures from private health insurers (PHIs). This amount escalated by 13.5% last year, partly due to delayed treatments during the COVID-19 pandemic now being addressed. "Hospital treatments are the primary cost drivers," remarks Florian Reuther, director of the PKV association. Expenditures on benefits have also seen an uptick this year.
The article states that only a select few insurers will avoid this price increase. The majority, however, will proceed with premium elevations. Approximately a third of their clients will be unaffected, while others will face more substantial impacts.
The vast majority (more than 90%) of the German population is safeguarded by a public health insurance fund. In the private sector, civilians, such as public employees and their relatives, as well as self-employed individuals and high-earning employees, commonly make up around 53% of the privately insured population.
Paraphrased from:
https://www.heise.de/newsticker/news/Große-Einspeisungen-fuer-gesetzliche-Krankenversicherung-5831812.html
Given the rising costs from private health insurers due to increased expenditures and delayed treatments during the COVID-19 pandemic, many policyholders may require advising on how to manage these premium hikes. As most providers are expected to implement these changes from January 1st, individuals should start considering their financial plans accordingly. Additionally, those affected by more extreme increases may benefit from seeking professional advice on alternative insurance options or strategies to mitigate the impact.
