The possible dismantling of Muface would not only have consequences on public health in terms of greater saturation of the system. This would also have an impact on the pockets of public employees who choose to take out private insurance for their health coverage, at a time when the entire sector is trying to manage the increase in costs suffered in recent years – resulting from inflation and the greater use of these services – with an increase in renewal premiums which, by 2025, is expected to be more significant than in previous years.
Sources from one of the industry leaders recognize that for an average insurance company the increase in renewals is around 10%. The data coincides with the increase detected by the comparator Rastreator, which indicates that the average price of comprehensive health insurance increased this year by 9.5% compared to 2023.
Specifically, it went from 62 euros in October last year to 68 euros in the same month this year. That is, if an official left the Muface umbrella and chose to take out private medical insurance, he or she would have to bear a cost of around 816 euros per year.
Added to this is the problem of the aging workforce, with half a million public employees over 60, according to data from the Active Population Survey (EPA). «The number of companies offering coverage decreases from 60 or 65; The offer decreases and therefore the premium increases”, warns Carmen Reverte, head of health insurance at Rastreator.
Age, in fact, is one of the factors that most influences the price of insurance. For the youngest (between 18 and 24 years old) the average is around 35 euros per month, followed by those between 25 and 34 years old, with an average of 47 euros per year.
Between 35 and 44 years the price amounts to an average of 64 euros per month, while from 45 to 54 years the cost would be 78 euros per month. Between the ages of 55 and 64 – and still talking about full and half insurance – they would pay 96 euros per month. For those with higher spending, those over 65, have an average monthly payment of 145 euros. That is, 122% more than the youngest.
Among the factors that determine the price of insurance, the place of residence is fundamental. Specifically, the price of health insurance can vary up to 500 euros depending on the Autonomous Community in which you reside, so it is important to review the coverage and the fine print to choose the policy best suited to the needs of the insured and therefore avoid to pay more.
Depending on each Autonomous Community, insurers set one price or another since in some populations the costs of health services are more expensive. In fact, as the comparator’s price index shows, the location of the insured can vary the insurance premium by up to 500 euros per year between the most expensive autonomous community and the cheapest one.
Specifically, Madrid is the Autonomous Community that has the highest average premium, with an average monthly price of 94 euros, followed by the Canary Islands and Navarra, both with 90 euros per month, Catalonia with an average price of 88 euros per month and Murcia, with an average price of 80 euros per month. Instead, in the ranking of the cheapest Autonomous Communities regarding this type of insurance we find Castilla y León, with an average price of 53 euros per month, Extremadura, 54 euros per month, Aragon, 57 euros per month, Asturias, 59 euros per month, and Castilla-La Mancha, 60 euros per month.
How does the aging workforce affect health insurance premiums and accessibility for public employees?
Interview Between Time.news Editor and Carmen Reverte, Head of Health Insurance at Rastreator
Time.news Editor: Welcome, Carmen! Thanks for joining us today. The potential dismantling of Muface has sparked a lot of discussion. From your perspective as an expert in health insurance, what do you think the immediate consequences would be for public employees?
Carmen Reverte: Thank you for having me! The dismantling of Muface could have significant repercussions, not just for public health systems, but also financially for public employees themselves. Those who might consider switching to private health insurance could face skyrocketing costs.
Time.news Editor: Right. We learned that the average increase in private insurance renewals is around 10%, and comprehensive health insurance premiums have already risen 9.5% this year. How does this increase affect the decision-making of public employees?
Carmen Reverte: It creates a very challenging situation. For someone on the Muface plan, leaving that safety net means likely spending around 816 euros annually on private insurance. Given that this increase is coming during a time of rising inflation and heightened demand for health services, public employees may feel squeezed, especially when considering the limited options available as they age.
Time.news Editor: Speaking of age, could you elaborate on how the aging workforce impacts insurance premium rates?
Carmen Reverte: Certainly! Age is one of the most significant factors driving insurance costs. As people get older, the number of insurers willing to offer coverage decreases—often becoming limited by the time you reach your 60s. This reduction in options leads to higher premiums. For example, individuals aged 55 to 64 are currently paying about 96 euros per month on average, which is substantially higher than younger age groups.
Time.news Editor: That’s surprising. So, younger employees have access to much lower rates. Does this create a disparity in how different age groups perceive healthcare?
Carmen Reverte: Exactly. Younger individuals, say those between 18 and 24, only average about 35 euros per month, which makes private insurance seem very affordable and accessible to them. However, as soon as you cross certain age thresholds, such as 45, the prices jump significantly. This inequality could lead to older public employees feeling more disadvantaged, especially if they’re contemplating leaving Muface.
Time.news Editor: What do you think will be the long-term consequences if Muface is dismantled?
Carmen Reverte: In the long run, if Muface is dismantled, not only would we see increased costs for public employees, but we could also face system saturation in public health services from individuals opting out of private insurance due to cost. This could ultimately exacerbate existing strains on an already burdened healthcare system.
Time.news Editor: That’s a sobering thought. As the head of health insurance at Rastreator, what do you recommend individuals and policymakers do to prepare for these changes?
Carmen Reverte: I’d advise individuals to actively research and compare their options now, rather than wait until they’re faced with sudden changes. They should engage in discussions about their insurance needs and financial capabilities early on. Policymakers should also consider conducting thorough assessments of how these changes will impact not just public employees but the broader healthcare system before making decisions.
Time.news Editor: Thank you so much, Carmen, for your insights today! This is certainly a topic that will continue to evolve, and we appreciate your expertise in unraveling the complexities of health insurance in relation to Muface.
Carmen Reverte: It’s my pleasure! Thank you for shedding light on such an important issue.