Health insurance company DSW, traditionally the first to announce the price of a basic policy for the following year, is to raise its premiums by €45 in 2016.

With an increase of €3.75 per month, DSW is well below the government’s estimate of an average €7 rise. DSW froze its fees last year.

The increase takes the cost of a basic DSW health insurance policy to €1,185 a year. The government has also decided patients must pay the first €385 of their bills themselves next year, a rise of €10 on 2015.

The price hike is inevitable because the cost of home nursing is now partly covered by health insurance, DSW said. However, the company said it has been able to keep the rise low by reducing its financial buffers by €145 per patient.

Buffers

Health insurance comparison website Zorgkiezer said on Wednesday that health insurance companies have increased their financial buffers by €6bn between 2011 and 2014. In 2014, the buffers rose €1.8bn.

This means health insurance companies have nearly €8.5bn more in their reserves than they are required to have by law. The buffers will have to be higher from next year.

ASR is the richest with surplus reserves of €1,771 per policy holder, Zorgkiezer said. Achmea is next with €700 followed by DSW with €613.