The Christelijke Mutualiteit (CM) has got rid of the age limit for members of its “Hospital Plan”. This means that over-65s who did not have this kind of cover before can now join this hospitalisation insurance plan. This innovation will also enter into effect with the Socialist mutuality (health insurance fund). Other mutualities are still looking into this, but they will no doubt follow suit even though most private insurers apply a maximum age limit of 70 for hospitalisation insurance, with high premiums for those over 60.
This will probably reignite the rivalry between health insurance funds and private insurers. While the latter were always trying to establish a single “level playing field” (including in the areas of premium taxes, solvency and reserves, and whole-life terms), the mutualities are so to speak hitting back with this initiative. It is of course necessary to read the guarantees offered by the health insurance funds in detail and these guarantees are below the level of the ‘unrestricted cover’ policies offered by some private insurers. On the other hand, the tariffs for over-65s are (also) considerably lower. But the fact that this offers an escape route for what was until now a virtually uninsurable group, is something we can only applaud.
As supporters of a free market economy we can only applaud this initiative, provided that this decision is based on sound and sustainable risk and financial management. Nevertheless, we advise joining at an earlier age in order to enjoy better cover at lower premiums.