The effect of inflation on health insurance in Spain

The current social and political context, which was dominated by the COVID-19 crisis and the war in Ukraine, has led to a sharp rise in prices due to the situation inflation. In Spain, this situation makes all economic sectors rethink their strategies in order to adapt to this price increase. Increases affect not only the costs of daily products, the increase of which is more noticeable on a daily basis, but also the service sector.

Thus, in the case of a field health insurance companiessources from this sector explain to medical writing that the sustainable situation of high rates of inflation may haveA double ‘negative’ effect on politicsalthough they hold some hope due to the peculiarities of the field.

These same sources confirm that Measures to slow inflation “It can slow economic growth, generate uncertainty and discourage hiring of insurance companies.” Likewise, they comment that the rate increase could translate into “an increase in costs to insurers when it comes to ensuring that their policyholders have access to contracted coverage.” Then they warn that if this happens, “it will be so Inevitable transfer of insurance premiums At least a portion of these new costs are to continue to ensure quality care.”

They also point out that this scenario may have a greater impact on the health branch, because this type of policy coexists with public health “and the insured can leave the insurance since general coverage“.

Possible increase in premiums?

Annual Variation Rate Consumer Price Index (CPI) It reached 10.2 percent in June in Spain; 1.5 pips higher than the previous month. Low growth rate, at a time when the Spanish economy has not fully recovered from Effects of the epidemicIt is a huge challenge. From the sector they repeat that, in the present situation, a higher premiums To deal with this increase in the costs of care “could negatively affect contracting with health insurance.”

“Although the sector has started the year with high growth ratesabove 8 percent, is a medium-term scenario that we envision and prepare for.” However, they are optimistic, taking the recent economic crisis as an example: “The health insurance industry was the only insurance industry that continued to grow even in the toughest moments of the financial crisis of 2017. 2008. Therefore, The sector has great strength to continue growingalbeit timidly, in complex economic situations.

Flexible plans to offer possibilities

Similarly, from the sector, it is stated that insurance companies have flexible plans to be able to adapt to different situations. For example, many times View new insurance portfolios that adapts to the needs of the insured, so that they can access the coverage they need according to their personal function,” he explains and adds that, for example, during the 2008 economic crisis, this option meant that many people “at some point in a sudden slowdown in Economic activity can keep them secure.”