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HEALTH

Mutuelles: Why is French health insurance getting more expensive?

France’s top-up health insurance 'mutuelles' have been getting steadily more expensive in 2020. Here’s a look at what’s changing, why and who is the worst affected.

Mutuelles: Why is French health insurance getting more expensive?
A dentist is checking the teeth of an elderly lady in a nursing home in Paris. Photo: AFP

“The prices have never been so high in France,” said Fabien Soccio, spokesperson for the company Meilleure Assurance (Best Insurance).

His company this week revealed the results of a new study of France's private health insurance fees, mutuelles, to French media.

After comparing 55 different mutuelles health insurances, Meilleur Assurance concluded that there had been a general spike in the average cost.

What is a mutuelle?

France has generous state health care that covers a lot of medical expenses, but not all costs are reimbursed.

In France you pay upfront for your doctor's appointment, prescription or procedure and then the government reimburses the costs to you. Depending on the procedure and your situation, usually about 80-90 percent of the cost is reimbursed.

If that cost is a €25 appointment with your GP that's not such a big deal, but with more expensive treatments the costs can mount up, which is where a mutuelle comes in.

The mutuelle is a 'top-up' insurance – not obligatory, but recommended – which covers extra costs that are not covered by the state. How much a mutuelle covers will depend on the kind of insurance, where you live and the expenses in question.

If you are an employee, your employer must pay for at least half the cost of your mutuelle

Who was affected by the price increase?

The 2020 price hike touched the country as a whole, however some regions and population groups were harder hit than others, Soccio told Le Parisien.

To compare the costs for different socio-demographic groups, Meilleur Assurance created three different types of profiles; a 25-year-old employee with a “classic” mutuelle; a couple with two children, also on a “classic” mutuelle and a 60-year-old couple with “strengthened” guarantees in their mutuelle.

Seniors hardest hit

Retirees tend to go for fuller versions of mutuelles because these cover additional costs (such as dental and optical treatments). 

Seniors on extensive types of mutuelles were those suffering the steepest price increases this year, Soccio said. 

“In 2020, fifteen départements exceeded a threshold of €3,000 in annual fees for a senior couple with extra guarantees,” Soccio said.

“That’s an average increase of more than €176 in one year,” he said.

For the couple with a child, the increase was slighter ( an extra 4 percent), whereas the young employee saw health insurance bills largely unchanged.

READ ALSO Brexit: Do I need a mutuelle to get residency in France?

 

.. along with Parisians

The study also revealed large price differences between different regions, with inhabitants in the Paris region Ile-de-France paying the highest bills for their mutuelles.

A retired couple would pay on average €528 more if they lived in Paris compared to if they lived in a more rural, cheaper département like Mayenne.

Similarly, employees would pay 30 percent more on average in Paris than in Pays-de-la-Loire.

Parisians also saw the steepest price increases since last year, by 14.6 percent on average for the retired couple with a mutuelle covering extra costs.

On a national level, the average price increase for the same couple was 12.1 percent. 

.. but everyone was a little worse off

However the country as a whole saw a price increase last year, with even those opting for the cheapest kinds of health insurance affected by the general price hike.

In one year, from 2019 to 2020, the cheapest type of health insurance had increased by 13.7 percent, according to the study. 

Why the increase?

Prices generally increase a little every year, but this year was unusual, Soccio said.

“Today, we are in an uncertain and troubled situation,” he told Europe 1, listing several factors that had contributed to the price increase: the Covid-19 pandemic, the government's new health reform known as “100 percent Santé”, and a new health tax known as the “Covid surtax”.

When the French government presented their new budget for 2021, centred on their dazzling €100 billion relaunch plan, they promised not to increase taxes for the French. Instead, to top up their savings a little, the government introduced a new tax, the “Covid surtax”, which will be paid through the mutuelles and other health insurance companies.

This tax will provide €1 billion in total to the state in 2021, and €500 million in 2022, according to French media.

What about the future?

Soccio said he worried the trend of prices increasing would continue in the next couple of years, leading to steep prices for even those opting for the cheaper mutuelles.

“It's safe to bet that the national average costs will pass €3,000 in the next two years,” he told Le Parisien.

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LIVING IN FRANCE

What changes in France in July 2022

Summer's here and the time is right for national celebrations, traffic jams, strikes, Paris beaches, and ... changing the rules for new boilers.

What changes in France in July 2022

Summer holidays

The holiday season in France officially begins on Thursday, July 7th, as this is the date when school’s out for the summer. The weekend immediately after the end of the school year is expected to be a busy one on the roads and the railways as families start heading off on vacation.

READ ALSO 8 things to know about driving in France this summer

Strikes

But it wouldn’t really be summer in France without a few strikes – airport employees at Paris’ Charles de Gaulle and Orly airports will walk out on July 1st, while SNCF rail staff will strike on July 6th. Meanwhile Ryanair employees at Paris, Marseille and Toulouse airports will strike on yet-to-be-confirmed dates in July.

READ ALSO How strikes and staff shortages will affect summer in France

Parliamentary fireworks?

Prime minister Elisabeth Borne will present the government’s new programme in parliament on July 5th – this is expected to be a tricky day for the Macron government, not only does it not have the parliamentary majority that it needs to pass legislation like the new package of financial aid to help householders deal with the cost-of-living crisis, but opposition parties have indicated that they will table a motion of no confidence against Borne.

Parliament usually breaks for the summer at the end of July, but a special extended session to allow legislation to be passed means that MPs won’t get to go on holiday until at least August 9th. 

Fête nationale

July 14th is a public holiday in France, commemorating the storming of the Bastille which was the symbolic start of the French Revolution. As usual, towns and cities will host parades and fireworks – with the biggest military parade taking place on the Champs-Elysées in Paris – and many stores will remain closed.

As the national holiday falls on a Thursday this year, many French workers will take the opportunity to faire le pont.

Festival season really kicks in

You know summer’s here when France gets festival fever, with events in towns and cities across the country. You can find our pick of the summer celebrations here.

Paris Plages

The capital’s popular urban beaches return on July 9th on the banks of the Seine and beside the Bassin de la Villette in northern Paris, bringing taste of the seaside to the capital with swimming spots, desk chairs, beach games and entertainment.  

Summer sales end 

Summer sales across most of the country end on July 19th – unless you live in Alpes-Maritimes, when they run from July 6th to August 2nd, or the island of Corsica (July 13th to August 9th).

Tour de France

The Tour de France cycle race sets off on July 1st from Copenhagen and finishes up on the Champs-Elysée in Paris on July 24th.

New boilers

From July 1st, 2022, new equipment installed for heating or hot water in residential or professional buildings, must comply with a greenhouse gas emissions ceiling of 300 gCO2eq/KWh PCI. 

That’s a technical way of saying oil or coal-fired boilers can no longer be installed. Nor can any other type of boiler that exceeds the ceiling.

As per a decree published in the Journal Officiel in January, existing appliances can continue to be used, maintained and repaired, but financial aid of up to €11,000 is planned to encourage their replacement. 

Bike helmets

New standards for motorbike helmets come into effect from July 1st. Riders do not need to change their current helmets, but the “ECE 22.05” standard can no longer be issued – and all helmets sold must adhere to a new, more stringent “ECE 22.06” standards from July 2024

New cars

From July 6th new car models must be equipped with a black box that record driving parameters such as speed, acceleration or braking phases, wearing (or not) of a seat belt, indicator use, the force of the collision or engine speed, in case of accidents.

New cars II

From July 1st, the ecological bonus for anyone who buys an electric vehicle drops by €1,000, while rechargeable hybrids will be excluded from the aid system, “which will be reserved for electric vehicles whose CO2 emission rate is less than or equal to 20g/km”.

What’s in a name?

Historically, the French have been quite restrictive on the use of family names – remember the concern over the use of birth names on Covid vaccine documents? – but it becomes easier for an adult to choose to bear the name of his mother, his father, or both by a simple declaration to the civil status. All you have to do is declare your choice by form at the town hall of your home or place of birth.

Eco loans

In concert with the new boiler rules, a zero-interest loan of up to €30,000 to finance energy-saving renovations can be combined with MaPrimeRénov’, a subsidy for financing the same work, under certain conditions, from July 1st.

Rent rules

Non-professional private landlords advertising properties for rent must, from July 1st, include specific information about the property on the ad, including the size of the property in square metres, the area of town in which the property is in, the monthly rent and any supplements, whether the property is in a rent-control area, and the security deposit required. Further information, including the full list of requirements for any ad, is available here.

Perfume ban

More perfumes are to be added to a banned list for products used by children, such as soap-making kits, cosmetic sets, shampoos, or sweet-making games, or toys that have an aroma.

Atranol, chloroatranol (extracts of oak moss containing tannins), and methyl carbonate heptin, which smells like violets, will be banned from July 5th, because of their possible allergenic effects.

Furthermore, 71 new allergenic fragrances – including camphor, menthol, vanilin, eucalyptus spp. leaf oil, rose flower oil, lavendula officinalis, turpentine – will be added to the list of ingredients that must be clearly indicated on a toy or on an attached label.

Ticket resto limits

The increased ticket resto limit ended on June 30th, so from July 1st employees who receive the restaurant vouchers will once again be limited to spending €19 per day in restaurants, cafés and bars. The limit was increased to €38 during the pandemic, when workers were working from home.

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