City-BKK saved from bankruptcy?

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Health insurance companies: City-BKK saved from bankruptcy?

The City-BKK has presented a reorganization concept that increases the hope of rescuing the ailing health insurance company. Around 50 million euros deficit had accrued to City-BKK in 2009 and 2010, so that at the beginning of the year it was forced to report imminent over-indebtedness to the Federal Insurance Office and to initiate insolvency proceedings to process the fund. The decision should actually be made in August, but based on the new restructuring concept and additional income from the health fund, there is still hope that the health insurance will be saved. The Federal Insurance Office has also granted City-BKK a grace period until the end of the year to check whether it is necessary to break up the health insurance company, said the spokesman for the Federal Insurance Office, Tobias Schmidt, told the “Tagesspiegel”.

If the City-BKK were to be processed, the members would have to be admitted to other statutory health insurance companies and there would be costs of around 150 million euros that would have to be absorbed by the other health insurance companies, explained the CEO of the BKK Landesverband Baden-Württemberg, Konrad Ehing .

A rescue of the City-BKK would in any case be a positive signal for the health system, because according to the experts there is a risk of a deficit of around 11 billion in the coming year that the health insurance companies will have to compensate in some form as the allocations from the Health fund not enough despite rising contribution rates. The key word here is additional contributions. However, it remains to be seen whether the collection of additional contributions can contribute to the reorganization of the health insurers or whether it will result in a massive loss of members. (27.08.2010, fp)

Also read:
Is the City-BKK health insurance bankrupt?
Two health insurance companies are broke

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