Else Beekman
The cost of health insurance for people over 55 in Spain has become a significant issue. Premiums are soaring and fewer insurers are offering coverage to the senior demographic.
As the country’s population ages, many older individuals are finding themselves facing price hikes of up to 20% or more when renewing their health insurance policies, sometimes paying as much as three times the amount younger policyholders are charged.
The age factor in health insurance premiums
According to Carmen Reverte, head of health insurance at Rastreator, the rise in premiums is largely driven by the aging of the insured population. Age is one of the most influential factors determining premiums, as older individuals are deemed a higher risk by insurers. An analysis by Rastreator found that the average monthly premium for health insurance for those aged 55 to 64 is €96 without a copayment and €75 with a copayment. For individuals aged 65 and over, the average monthly cost rises sharply to €145 without a copayment and €119 with, representing an increase of up to 122% compared to younger policyholders aged 18 to 24. Their premiums average just €35 a month.
Fewer insurers and less coverage
One of the key issues seniors face is the limited number of insurers offering coverage for those over 55. Many companies have reduced their services to this age group. With fewer options available, the premiums have inevitably risen. Insurers perceive a greater risk when covering older individuals, which leads to higher costs for this group. However, Reverte highlights due to increased life expectancy and Spain’s aging population, more insurers are developing products tailored to the needs of seniors. Consequently, offering more flexible options and making it easier for older individuals to access health insurance.
Specialised products for seniors
For individuals over 60 who struggle to find a standard policy, there are specialised health insurance products specifically designed for the elderly. These plans often include medical coverage overseen by geriatric specialists. Additionally, they offer comprehensive benefits such as access to medical specialists, diagnostic tests, and surgical interventions.
The importance of reviewing health insurance policies
Reverte also warns consumers about the importance of understanding the terms of their health insurance policies before committing. Many insurers have waiting periods (known as periodos de carencia) that could affect the ability to access certain services. Examples are consultations with specialists or diagnostic tests. Additionally, pre-existing conditions—health issues that an individual had before purchasing the insurance—are often excluded from coverage. However, some insurers offer policies for those with pre-existing conditions. It’s crucial for individuals to thoroughly review the fine print of any policy and select one that best fits their healthcare needs.
Ageing in Spain
Spain’s ageing population is a growing concern, with the country experiencing one of the fastest increases in median age across the European Union. As of January 2023, the old-age dependency ratio has reached 33.4%. This means that for every person of working age, there are more elderly individuals in need of care and services. This demographic shift is placing increasing pressure on Spain’s social services, healthcare system, and pension schemes. The pension bill, which currently exceeds 13% of GDP, is set to rise to 16.7% of GDP. Similarly, the cost of care is expected to increase by 20%, from 5.9% to 7.1% over the next fifty years. The economic impact of this rapid ageing is felt across various sectors, with the government facing urgent challenges to ensure the sustainability of the welfare state.