On Prince’s Day, the health insurance adjustments for 2023 were announced. Which changes will be made compared to 2022 are described below. Besides a higher health care premium, the group discount will disappear. So higher costs for your employees. Because of tightness in the labor market, ageing and financial concerns, we see rising absenteeism figures and a higher WIA inflow. That is why health, vitality and wellbeing are becoming increasingly important themes. Our vision is that collective health insurance will become an increasingly essential instrument to contribute to these themes. Despite the cancellation of the discount on the basic insurance. You can read more about the changes in 2023 and the (demonstrable) importance of collective health insurance below.
The premium for the basic insurance will go up significantly. The government expects an increase of about 120 euros per year (10 euros per month). By 12 November 12, 2022, health insurers must have announced their healthcare premiums for 2023. This usually happens on the penultimate or last day.
In 2022, a 5% discount on basis insurance was still allowed, but in 2023, this is no longer the case. Collective discount may only be given to additional insurances. The idea behind this is that a collective discount is ultimately paid for by the insured. The premium is first increased for everyone, and then a discount is applied for a certain group of insure. Thus, one group of insured pays for another group’s discount, and this inequality is intended to be countered. It is also expected that cancelling the discount will lead to a clearer and more equal policy landscape.
The mandatory personal risk on health insurance will remain the same in 2023, at €385.
The reimbursement for paramedical recovery care for people who have had Covid-19 will remain in the basic insurance in 2023 (at least until 1 August 2023). The reimbursement applies to treatments people receive when they still suffer from severe symptoms and/or limitations due to infection with Covid-19. This applies to costs for physiotherapy, exercise therapy, dietetics and occupational therapy, among others. No additional insurance is needed for this.
The healthcare allowance will be 34 euros per month higher in 2023. The exact income limit to qualify for care allowance is 2023 is not yet known. The limit is now at € 31,998, and at € 40,944 with an allowance partner.
For many employers and their employees, collective health insurance is an interesting secondary benefit. About 60% of the Dutch are insured through collectivity. With the disappearance of the collective discount on basic insurance, part of this benefit will also disappear. Partly due to the widely rising costs, it is expected that employees will now look around more quickly for cheaper options. But collective insurance can still be an interesting choice for both employees and employers.
The discount on additional insurances remains. Also, premiums for the various basic insurances do not differ to much from each other due to additional government measures. It is expected that health insurers will slightly increase the collective discounts on the additional insurances and/or expand additional insurance packages for collectivities with additional coverage. This will vary per insurer.
Health insurers will also focus more on prevention and vitality to reduce healthcare costs. Collectivities are interesting for insurers because, through employers, they can more easily reach larger groups of insured people with similar health situations for such prevention. That works better than approaching individual insured people. Health insurers are therefore keen to think along with employers when it comes to vitality and often make preventive health budgets and support services available.
Employers are also increasingly investing in the health and wellbeing of their employees. Not only to prevent absenteeism, but also to attract and retain good staff in a tightening labor market. Wellbeing is increasingly becoming an integral element of strategic personnel policy. A good additional health insurance with extensive coverage fits – perhaps now more than ever - perfectly within this policy and the total benefits package. After all, as an employer you want your employees to get the right care when needed. This promotes their employability. It is important to choose the health insurer that suits your organization and vision, with the wishes and needs of your employees at the center. In the end, they make the choice of health insurer.
The ‘return on investment’ (ROI) on wellbeing policies is hard to measure, let alone the added value of the collective health insurance. But there does appear to be added value. Research by one of the major insurers1 has shown that the ROI of the collective health insurance is 1.42. This means that the projection is that each euro invested returns more than 1.4 times over a five-year period.
The coming period is dominated by insurers announcing the new premiums and conditions. Most insurers will not announce the new rates November 12. After that, employees have until 1 January 2023 to make their choices.
For employers, for making new choices, the period from 12 November to 1 January, is too tight. More time should be allowed for careful consideration and proper stakeholder management within the organisation. Our proposal, therefore, is to use the next few months for communication and determining a good strategy to make new agreements for collective health insurance in 2023.
The overall planning then looks as follows.
| November 2022 | December 2022 | Q1 2023 | |
|---|---|---|---|
| Communication premiums and condities 2023 | Optional: Specific benchmark | Communication employees and individual decision making | Strategy determination |
| Proposal 2023 | If proposal is not market practice | Communication mix | Market scan |
| Communication | Possible RfP | In cooperation with the health insurer | Agreements health insurers |
| General benchmark | Optional: extended market research | ||
| Follow-up | |||
| Stakeholder management by WTW | |||
As your trusted advisor, WTW can help you strategically deploy your collective insurance within your wellbeing and benefits policy. We help you choose the right health insurer that suits your organization, but especially your employees. We would be happy to make an informal appointment with you to discuss this further, you can contact Joost de Vente for this.
1 social impact of collective health insurance
