Health insurance to soar to nearly €500 a month for high earners

People earning more than €70,000 a year will have to pay €482 per month in health insurance fees when the new cabinet’s system comes into force, according to calculations by Nos television.

The broadcaster says people on welfare benefits will have to pay around €20 a month, slightly less than they pay now when health insurance benefit of up to €70 is taken into account.
The Nos bases its calculations on information contained in the coalition accord that was presented to the public on Monday. Health insurance benefit will be scrapped when the new system is launched in 2014.
Average earnings
People on an average salary of around €33,000 a year will have to pay €140 per month, Nos calculates.
The increase will be partly compensated for by lower tax rates. This means high earners will pay some €126 less in tax per month while those on an average salary will get back €50, which fully covers the higher insurance cost.
Stef Blok, who negotiated the agreement on behalf of the right-wing VVD and is tipped to become housing minister in the new cabinet, admitted premiums will go up sharply for some people. ‘A coalition agreement is a question of give and take,’ he told the broadcaster.
Labour leader Diederik Samsom said it is fair to ask some people to pay more, and emphasised that tax cuts will help pay for the increase.
Own risk
The Nos report did not say what the likely effect would be of an income-dependent own risk element, which the government also plans to introduce.
Many people currently opt for a maximum own risk payment of up to €700 which cuts their basic monthly premium to around €70 a month.
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