Many Residents in the Netherlands Overpay for Health Insurance, Research Shows
Report by the Dutch Authority for Consumers and Markets (ACM) and the Dutch Healthcare Authority (NZa) has found that 61% of residents in the Netherlands paid €103 more than necessary in 2023.
Recent research by the Dutch Authority for Consumers and Markets (ACM) and the Dutch Healthcare Authority (NZa) has revealed that many residents in the Netherlands are overpaying for health insurance. In 2023, 61% of people in the country paid on average 103 euros more than necessary for their insurance costs. This overpayment is due to the multitude of complex insurance policies available, which often include minor differences that result in higher prices but do not provide significant extra coverage.
Similar Health Insurance Policies at Higher Prices
In the Netherlands, it is mandatory for residents to have health insurance, covering essentials such as GP appointments, prescriptions, hospital treatments, and dental care for children under 18. The health insurance market is dominated by four major companies—Achmea (Zilveren Kruis), VGZ, CZ, and Menzis—which together control 90% of the market.
The research by ACM and NZa found that many health insurance policies offered by these providers are nearly identical, with only trivial differences between them. Despite the legal ban on premium differentiation, where the same policy is offered at different prices, insurance companies get around this by introducing minor variations, such as a slight difference in the reimbursement rate for non-contracted care. These small differences often lead to significant price increases, making it difficult for consumers to identify cheaper alternatives and leading to overpayments.
The way these policies are presented to consumers contributes to the problem. The large number of similar policies and their complex presentation make it challenging for people to understand the differences and choose the most cost-effective option. This confusion results in many Dutch residents paying more than necessary for their health insurance.
Recommendations for Improvement
To address these issues, ACM and NZa have recommended several measures.
Expand the Ban on Premium Differentiation: Prevent insurers from offering nearly identical policies at different prices.
Simplify Choices: Reduce the number of similar policies to make it easier for consumers to choose.
Accessible Supplementary Insurance: Ensure all supplementary health insurance plans are available regardless of the basic policy chosen.
These recommendations aim to make it easier for people to find affordable health insurance and make better-informed decisions.
Proposed Reforms and Future Legislation
The findings by ACM and NZa align with a report published last year by the Council for Health and Society (RVS), which advocated for health insurance costs to be means-tested and correlated to individual incomes. The RVS also recommended capping deductibles for those with chronic illnesses.
The new Dutch cabinet, formed under Geert Wilders, has plans to reduce the health insurance deductible by more than half, aiming to cut the current mandatory deductible of €385 included in all insurance policies by 2027. While this policy would cost the government an extra €3 billion per year, Wilders proposes to fund this by reducing spending on other areas, such as limiting unemployment benefits to 18 months and cutting foreign aid by €2.4 billion. However, given the Dutch political system's focus on compromise, it is uncertain if these reforms will be implemented.