Is Premium Adjustment a Cure-All for Private Health Sector? The Case of Germany

Health weboost coax cable insurance companies are confronted with various tasks in order to offer life-long health care services to their customers.Increasing health expenditures and growing life expectancy necessitates doing annual calculations.At this point triggering factor is applied as a control instrument for continuously seen alteration of health expenses.

On the basis of triggering factor a decision must be taken whether premium adjustment is required or not.Premiums of old people may increase seriously, but newly determined premium after premium adjustment must be limited.That means, up to a maximum of a certain premium increase can be given to an insurance holder.

In this connection; old age problem in German health insurance sector, application of single premiums, their financing resources, and investment strategies of insurance companies are illustrated as a model.This paper shows that premium adjustment alone is not enough to stabilize premiums.So, the need of qualified finance department for asset management occurs.

Keywords: Health insurance companies; old age problem; premium adjustment; investment portfolio hand wipes individual packets JEL Classifications: G11; G22; I13; J11.

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