Preventive mechanisms for changing external factors in the German health insurance sector

High quality and a wide range of services offered by the German private health sector, which can be shown as a model for other countries, without a doubt has a price for supplying the best possible services to health insured people in case of sickness. Due to increasing life expectancy, development of new and expensive techniques resulting from progress in medical field (e.g. heart and vascular transplantation), and increase in the number of chronic diseases such as allergies and skin diseases have intensified the demand of insured person for health services. While on the other hand; these factors force insurance companies to develop supporting tools because of changing circumstances in order to provide continuing health care services. In this study, preventive mechanisms for changing external factors in the German health insurance sector are discussed. In the first part of the study information on process of premium adjustment are given. In the second part, after examining the conditions for providing life-long services, the role of premium adjustment process in the private health insurance sector is investigated. Moreover, in the same part attention is given to calculation bases that should be revised during premium adjustment if it is decided to be realized. In the third part the legal bases of premium adjustment are analyzed. In the fourth and the last part, after examining the effect of increasing health care, which is a trigger of all these developments, to premiums, lastly conclusions and results obtained are presented.