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Health insurer DSW has announced a €9.50 per month increase in the premium for mandatory basic health insurance, bringing the monthly cost to €158.50 in 2025.

This 6.5% rise aligns with the projections made by the Dutch Cabinet in its budget proposal and is slightly lower than the anticipated increase for the government's four-year term.

DSW CEO Aad de Groot explained that the price hike is unavoidable due to rising healthcare costs. DSW is the first insurer to reveal its 2025 premium, with others expected to follow by November 12. Premiums across the industry are expected to increase by a similar amount to last year, approximately €10 per month.

De Groot expressed concerns about the long-term affordability of health insurance, predicting that premiums could surpass €200 per month in the coming years. "We’ve reached the limit of what people can afford for healthcare," he warned.

DSW is also worried that many Dutch citizens may struggle to afford these rising premiums. De Groot criticized the current system as outdated and expressed doubts about the Cabinet's plan to reduce the mandatory deductible from €385 to €165, arguing that it would only lead to higher monthly premiums.

He called for a major reform of the health insurance system, advocating for reduced competition between insurers and suggesting that monthly premiums could be cut by around €30. He also proposed that healthcare costs could be funded more through income-based taxes.

“Market competition was introduced in 2006 to control rising healthcare costs and improve quality. The idea was that insurers could differentiate policies by purchasing healthcare more efficiently. But now, most policies are nearly identical, and insurers focus on attracting young, healthy customers through commercial tactics like voluntary deductibles or budget policies,” De Groot stated.

He further warned that the halving of the deductible, scheduled for 2027, could drive premiums above €200 per month. “We need to seriously consider how long we can continue increasing premiums,” he added. Photo by Tommaso.sansone91, Wikimedia commons.