WILLEMSTAD - In 2024, private health insurance premiums are once again on the rise, with many experiencing a 5 percent increase compared to 2023.
Since the introduction of the basic health insurance (bvz), overseen by the Social Insurance Bank (SVB), the majority of individuals on Curaçao are bvz-insured. Approximately nine out of ten people fall under this category. Private insurers, including Guardian/Fatum, Ennia, Citizens, Nagico, and CG United, cater to the remaining tenth of the population.
When questioned about the 2024 premium adjustments, Guardian stated, "No, Guardian will not apply a general annual premium indexation for its health insurance. Only individuals reaching the ages of 60 or 70 in 2024 will receive the usual one-time age-related surcharge – a 5 percent premium increase."
Ennia, on the other hand, has announced a premium increase effective January 1, 2024. The reason behind this decision is explained as follows, "We are increasing the health insurance premium by 5 percent due to the rising prices of (health) products and services in Curaçao and beyond. Additionally, the premium increases based on the age of the insured." Policyholders have been informed in writing.
With private insurance covering about 10 percent of the total health insurance market, the majority of individuals are insured under the social insurer SVB. It's worth noting that the bvz premium is insufficient, and the government provides an annual subsidy of 250 to 300 million from general tax revenues.
When asked about the advantages of private insurance over SVB, Guardian emphasized, "Private insurers are legally obligated to offer at least the same coverage as SVB. Many private insurers provide more extensive coverage than SVB. Therefore, a privately insured individual is always equally or better insured than with SVB."
In terms of market trends since the introduction of bvz, insurance companies note a declining market for private health insurers. However, there is an upward trend in individuals choosing additional health coverage from private insurers due to the limited coverage offered by SVB.
The bvz premium is determined based on income, with those earning 12,000 guilders or less exempt from payment. For incomes exceeding 12,000, a premium of 13.6 percent is owed, with the employer contributing 9.3 percent and the employee 4.3 percent. Self-employed individuals pay the full 13.6 percent. A sliding scale applies to incomes between 12,000 and 18,000, and no premium is due on the excess for incomes over 150,000. If someone is no longer insured for the general old-age insurance AOV, the premium is reduced to 6.5 percent.