Health insurance contributions are projected to rise by an average of 6% in 2025, following an 8.1% increase in 2024. Individual contracts may see a 5.3% rise, while mandatory collective contracts could increase by 7.3%. The surge in costs is attributed to aging demographics and rising health expenditures, prompting calls for better cost management. Adjustments to contributions may occur pending the finalization of the Social Security budget, with ongoing scrutiny of health providers regarding these increases.
Rising Health Insurance Contributions: What to Expect in 2025
The landscape of health mutuals is set to witness a significant shift, with predictions indicating an average contribution increase of 6% for the year 2025. This follows an already substantial rise of 8.1% in 2024, driven by the escalating costs associated with health expenditures. In the corporate sector, mandatory collective contracts are expected to see an even steeper rise, averaging 7.3%.
Individual vs Collective Contracts: Understanding the Differences
When it comes to health insurance, the type of contract you hold can greatly influence the rate of increase. Individual contracts, often chosen by retirees, are projected to rise by an average of 5.3%. In contrast, mandatory collective contracts, which cover employees through their employers, are anticipated to increase by an average of 7.3%. Optional collective contracts are also on the rise, with an expected increase of 6.8%, as outlined by the Mutuality.
The overall increase of approximately 6% is noteworthy, especially following the record spike of 8.1% in 2024. This follows increases of 4.7% in 2023 and 3.4% in 2022, significantly exceeding the average of 2.6% witnessed over the preceding decade. Eric Chenut, the president of the Mutuality, recognizes the public’s concerns about these rises but insists they are vital for maintaining comprehensive coverage for all.
The Impact of Aging and Rising Health Costs
The Mutuality emphasizes that the projected increase is “inevitable,” primarily due to the “structural” growth in health expenditures across France, which stood at 5.2% in 2023. This structural increase is compounded by a higher contribution from complementary health plans toward certain medical expenses, such as dental costs, which have seen coverage rise from 30% to 40% since 2023.
Chenut has called upon all stakeholders in the health sector to collaborate on strategies to better manage the rising costs. He warns that health expenditures are increasing at a rate two to three times faster than the growth of national wealth. With an aging population and continual advancements in medical science, these costs are projected to escalate further without significant structural reforms.
Despite the uncertainties surrounding health expenditures for 2025, largely due to the absence of a finalized Social Security budget, the Mutuality has released its estimates. The government’s budget proposal suggested that complementary health would contribute more towards the reimbursement of medical consultations and medications, potentially allowing Health Insurance to save around one billion euros.
Potential Adjustments and Future Outlook
If the anticipated increase in contributions does not materialize because of the lack of a Social Security budget, adjustments may be made to lower the contributions. Chenut pointed out that exact adjustments would only be determined once the future Social Security budget is clarified.
Any new increases in rates are likely to draw criticism towards complementary health providers, who may be accused of driving costs excessively. A recent senatorial report projected that the growth trend in health expenditures should have led to a rise of between 4.5% and 6.5% in 2024, rather than the observed 8.1%.
In defense of the rising contributions, complementary health providers can reference data from Drees, the statistics service of the social ministries, which indicated that in 2023, all families combined experienced a slight “technical loss.” Their expenditures exceeded the contributions collected by 0.4%. Overall, when considering financial products, the net profit for complementary health was recorded at 3.4% of contributions in 2023, a slight decrease from 3.5% in 2024.