A “daisy chain” of increases has been set up in the insurance market for health insurance contracts. Companies have already proceeded with increases ranging from 4% to 10.8% in health insurance premiums, burdening their 1,000,000 customers. During the summer, the ELSTAT health cost calculation index is expected, which will serve as a reference point for companies for new increases.
In a recent meeting of the Union of Insurance Companies with Development Minister Takis Theodorikakos, he urged them not to exceed 7% increases, without the government currently having controlled the pricing methods of private hospitals, as well as the scope and requirements of contracts. Future increases across all companies may reach 10%-12% and possibly more. Already, eight major insurers have proceeded with increases starting from 4% and reaching 10.8%, depending on contracts, their duration, and the age of the insured.
Until today, without an official index, insurance companies maintain greater flexibility in the way they apply increases, something that -as market executives estimate- opens the way for adjustments above 10% in many health contracts, without any improvement in benefits. According to insurance market executives, the reasons behind the increases focus on:
- rising price lists of private hospitals and clinics,
- more expensive medical procedures,
- increased frequency of hospitalizations after the pandemic,
- aging of the insured population in lifetime programs.
Households will either pay more to maintain the same coverage or be forced to reduce benefits and compensation limits. At a time when the public health system remains under pressure, private insurance is becoming increasingly unaffordable. These increases are also supported by the recent Council of State decision (2196/2025) which explicitly states that the exercise of the relevant right of unilateral premium adjustment by insurance companies is legal only if the following conditions are met collectively:
1. The adjustment must be justified by a serious reason, which must be explicitly stated in the contract.
2. The company’s decision must be based on specific, reasonable and as concrete as possible criteria, which will allow the average insured to understand the adjustment method and evaluate its financial consequences.
3. The possibility and eventuality of adjustment must be accompanied by adequate, clear and continuous information to the insured.
The dispute that has erupted over health insurance premiums
At the same time, an intense dispute has erupted between insurance intermediaries and insurance companies. The Union of Insurance Intermediaries believes that insurance companies must immediately proceed to formulate adjustment clauses in a way that meets the requirements arising from the principles of transparency, balance and good faith towards their insured, with criteria that are transparent and easily accessible to the average insured, linked to objective and publicly accessible indicators, which will ensure full compliance with the transparency requirements set by the Council of State decision. The breakdown of relations between insurance agents, insured and insurance companies came from the unilateral decisions of companies for excessive premium increases and unilateral decisions for reductions in insurance intermediaries’ compensation on earned health premiums, i.e., on contracts that have already been concluded and which, if legal actions are filed, these decisions will be judged illegal.
It should be noted that the Hellenic Association of Insurance Companies (EAEE) requests the reconsideration of the high 24% VAT rate on private health services, as well as the extension of the exemption of health insurance premiums from the 15% tax to all ages or at least to ages over 65 years. At this point it should be mentioned that during the five-year period 2010-2015, the General Secretariat for Consumer Affairs imposed fines of 2 million euros on three insurers for arbitrary increases of 10% to 15%, when the cost of health services ranged between 1.5% and 3.6% in hospital coverage insurance contracts.
Published in Sunday Afternoon
