A recent article published in Economisch Statistische Berichten (ESB) explores the Dutch general public’s interest in multiple-year health insurance contracts. These contracts could offer significant advantages for both consumers as well as health insurers. “Currently, health insurance contracts are renewed annually. Our research at Erasmus School of Health Policy & Management, in which we measure consumer preferences for one and multiple-year health insurance contracts by means of a choice experiment, shows that offering multiple-year contracts seems to fulfill a consumer need,” states Tim Benning, Assistant professor at Erasmus University Rotterdam.
Multiple-year health insurance contracts have several benefits for consumers:
- More Certainty: They provide long-term certainty regarding coverage and premium, reducing the need to select a new contract every year.
- Improved Preventive Care: Insurers may be more inclined to invest in long-term health initiatives if customers remain insured for multiple years.
- Enhanced trust relationships: A multiple-year contract could enhance trust relationships between consumers and insurers, ensuring continuity in healthcare services.
However, there could be potential drawbacks as well:
- Reduced Flexibility: Consumers have fewer opportunities to switch from health insurers if they are dissatisfied with their policy.
- Less Competition: A shift towards multiple-year policies could reduce the competitive pressure in the health insurance market, which potentially affects the premium of the contract and service quality.
“While multiple-year health insurance contracts could provide long-term certainty and more investments in preventive care, there are also challenges to consider. Further research is needed to assess the impact of multiple-year health insurance contracts on the Dutch healthcare system and to ensure these contracts meet the needs of both consumers and health insurers,” states Marco Varkevisser, Full professor, Erasmus School of Health Policy & Management at Erasmus University Rotterdam.
