Is the City BKK closed?
According to reports by the Handelsblatt, the City BKK company health insurance company is about to close. The newspaper reported that the Federal Insurance Office BVA and the Federal Association of Statutory Health Insurance Funds (GKV) have doubts about a positive business result. A decision as to whether and when to close will depend crucially on the financial situation of the company fund in the first quarter of this year. In health insurance circles, the tendency is now more towards closure.
15 euros additional contribution to City BKK The City BKK had already informed the supervisory authorities of a critical financial situation in the spring of last year. The health insurer then raised an additional contribution of 8 euros from its insured. Since this additional contribution was not sufficient, the health fund raised the additional contribution in January 2011 to 15 euros per month. Due to the additional contributions, however, the health fund had to contend with an enormous loss of members. Last year alone, around 12,000 members of the health insurance fund left the BKK.
City BKK 50 million debts?
Around 200,000 people are insured in the City BKK. According to unconfirmed reports, City BKK has accumulated a mountain of debt of around 50 million euros. As a result, the association of company health insurance funds ordered City BKK to implement a strict restructuring plan in early November 2010. If necessary, the stricken cash register could also avail of an aid fund of around 40 million euros. Since then, all steps towards reorganization have been monitored by the Federal Insurance Office, the Federal Association of Statutory Health Insurance Funds and independent consultants. So far, the funds made available have not been used. However, a reduction in staff or further austerity measures cannot be ruled out. The result of the first quarter is now decisive. The results will be available in May at the latest. Then it is decided whether the cash register was successful in the renovation or whether a closure is pending.
Members remain insured even in the event of bankruptcy The City BKK members do not lose their health insurance coverage even if the fund is closed. If the health insurance company has to be closed, the other company insurance companies are obliged to accept the City BKK members. Treatments that have not yet been completed would continue to be financed.
Closing a health insurance fund poses an incalculable risk for other health insurance companies. This is because the debt burden left behind must be borne by the other funds in the network in the event of bankruptcy. This obligation can in turn result in financial bottlenecks. A snowball effect and thus further bankruptcies threaten. (sb)
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