Germany reinstates obligation for health insurers to notify members of premium increases

The decision to eliminate the obligation for statutory health insurers in Germany to notify members of premium increases has been reversed. Health Minister Carsten Linnemann announced that this requirement will be reinstated.

Step Back from the Decision

German Health Minister Carsten Linnemann announced that the decision to abolish the obligation for statutory health insurers to notify their members of premium increases has been revoked. The notification requirement, which was eliminated through an austerity package enacted about two months ago, had drawn sharp criticism from consumer rights advocates.

Statements by Minister Linnemann

CDU Minister Carsten Linnemann justified the policy change in a statement to the Rheinische Post newspaper, stating that premium rates are critically important information for insured individuals. Linnemann emphasized that returning to the notification requirement is directly related to trust in statutory health insurance funds.

Abolished for Cost-Saving Purposes

Under the austerity package adopted in July, statutory health insurers were exempted from the obligation to actively notify members by mail when increasing their additional premiums. The federal government had aimed to save on bureaucratic costs with this move.

According to sector estimates, the cost of each letter ranged between 1 and 2 euros, resulting in millions of euros being spent. Data from the National Association of Statutory Health Insurance Funds shows that approximately 75 million people have statutory insurance in Germany.

Consumer Rights and Right of Termination

The elimination of the notification requirement created the risk that insured individuals would realize premium increases too late. This situation effectively rendered the special right of termination meaningless.

Without the special right of termination, insured individuals remain bound to their current insurance for at least 12 months. Insured individuals who learn of premium increases in a timely manner, however, can terminate their contracts until the end of the month in which the increased additional premium first becomes valid.

Support from Consumer Centers

Ramona Pop, Chairperson of the Federation of German Consumer Organizations, welcomed Linnemann's announcement. Pop stated that this was an important and overdue signal, noting that insured individuals can only exercise their special right of termination thanks to this measure.