Health insurance company DSW, traditionally the first to announce its fees ahead of the new round of price hikes, said on Tuesday it will put up its premiums by €4.50 a month next year.

That will take the cost of a basic health insurance package to €112 a month. Last year, DSW cut its premium charges by 50 cents a month.

The main reason for the higher premium is increasing costs, salaries in particular, DSW said. ‘Specialist drugs are also more expensive and the rise in the lower value added tax rate is also having an impact,’ DSW director Chris Oomen said.

The government said at the budget presentation last week it expects premiums to rise by around €10 a month this year and that it was freezing the own-risk payment at €385.

The four biggest players – Achmea (Zilveren Kruis), VGZ, CZ and Menzis, which control some 90% of the market, have until November 12 to publish their fees.

Research published in January this year showed that one in four people now opt to raise their own-risk payment to the maximum €885 in return for lower premiums.

There is a two-month window at the end of every year during which policyholders can switch health insurance company.