This is how your premium is calculated

How the premium is calculated

The premium for the basic healthcare package can differ between insurers and is made up of 2 parts: the premium calculation and the premium markup. Another important factor is reserves.

The premium markup

The premium markup consists of among other things:

• Operating expenses
• The difference between national estimate of healthcare costs and expected healthcare costs 
• The amount of reserves an insurer has and
• The financial demands an insurer is legally bound to.

Every insurer has its reserves

Insurers have to abide by legal requirements. Every insurer has to have some reserves to compensate setbacks. An insurer will assess the costs of care ahead of time for the following year. Afterwards the costs will either be above or under the estimate. Which results in either a profit or a loss. Any profits will go towards our reserves, and a loss will be covered by the reserves. Every year we take a look at those reserves. Do we have a high reserve, for instance because of a big profit? Then we can lower our premium. Do we have a low reserve, because regulations aks for a higher amount for instance? Then the premium will go up.

The calculation for 2020

The calculation for 2019