This is how your premium is calculated
The government decides what will be covered in the basic healthcare package. This basic package is the same for everyone but the premium differs per healthcare insurer.
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 calculation is an estimate by the government for the basic healthcare insurance premium. It is a fixed amount that is the same for each insurer.
The insurer decides the premium. The premium markup is the reason premiums can differ from one insurer to another. The costs that make up the premium markup are explained below.
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
Premium 2020 | |
Premium calculation (determined by VWS in 2019) | € 1.373 |
Zilveren Kruis premium markup | |
Result equalisation health care purchase | - € 33 |
Operating costs and claim handling costs | + € 70 |
Use of investment returns | - € 3 |
Withdrawal of reserves | - € 8 |
Addition to reserves |
€ 0 |
Profit markup | € 0 |
Profit due to collective discounts | + € 46 |
Profit due to discount on voluntary excess | + € 24 |
Profit due to irretrievable insurance premiums | + € 3 |
Other profit | + € 3 |
Taxes |
€ 0 |
Average Zilveren Kruis premium (total) | € 1.475 |
Discount for collective insurance not included | |
On average per month | € 122,92 |
The calculation for 2019
Premium 2019 | |
Premium calculation (determined by VWS in 2018) | € 1.380 |
Zilveren Kruis premium markup | |
Result equalisation health care purchase | - € 67 |
Operating costs and claim handling costs | + € 64 |
Use investment returns | - € 5 |
Withdrawal of reserves | € 0 |
Addition to reserves |
+ € 1 |
Profit markup | € 0 |
Profit due to collective discounts | + € 90 |
Profit due to discount on voluntary excess | + € 22 |
Profit due to irretrievable insurance premiums | + € 3 |
Other profit | + € 1 |
Average Zilveren Kruis premium (total) | € 1.489 |
Discount for collective insurance not included. | |
On average per month | € 124,08 |