DSW, traditionally the first healthcare insurance company to announce its new premiums, is raising the cost of a basic healthcare policy by €6.50 a month to €124.50.

The government said at the presentation of its 2021 budget last week it expected premiums would rise by around €5 a month to around €123.

The increase will be largely offset by a rise in healthcare benefits, which are going up €3.66 for a single person and €8.25 for a family.

DSW, which is a relatively small insurer and works on a not for profit basis, said the increase is due to both higher prices, particularly for more expensive drugs, and higher pay for healthcare workers.

Coronavirus

Coronavirus has not added to healthcare costs because the extra expense of dealing with the pandemic has largely been offset by declining costs for other treatment, DSW director Aad de Groot said.

‘We are assuming that 2021 will be a normal year in terms of health costs,’ he said. ‘Of course that is uncertain because no-one knows how things will work out. But given that no-one wants regular care to be halted, there is a good chance that costs will rise.’

De Groot also said he felt the government had painted a rosy picture of insurance premium developments. ‘Every year in which there is an election the health ministry comes out with a lower figure than the insurers,’ he said. The Netherlands will go to the polls in March 2021.

Competition

The government determines the make-up of the basic healthcare insurance policy and insurers are free to compete on price, top up premiums and other issues such as choice of hospital.

Insurance companies have until November 12 to publish their premiums for the following year, and policy holders then have until the end of the year to decide whether or not to switch provider.