The Netherlands’ 2020 budget, which passed on 1 January 2020, slightly increased health insurance premiums for the basic package by approximately EUR 37 per year. In addition, the 2020 budget lowered the discounted health insurance premium that insurance providers could offer to employers on a group basis from a maximum of a 10% discount to a maximum of 5%.


All employees who live or work in the Netherlands are required to purchase basic health insurance in accordance with local law. The aging population and an increase in the number of people with chronic health conditions has caused an increased demand in healthcare. This has prompted the government to raise health insurance costs.

Key details

The Netherlands’ 2020 budget made the following key changes:

Discount rate
The maximum discount rate that is typically given to employers for collective insurance policies insuring their employees decreased from 10% to 5%. The discount decrease coupled with the small premium increase results in a more significant increase of the insurance premiums. Depending on the financing of these policies, the cost to employees or employers will increase in 2020.

While the health insurance premiums are raising, the standard mandatory deductible that must be paid to the health insurance provider before healthcare costs can be reimbursed to the policy holder remains the same at EUR 385. However, the policy holder can decide to increase it in return for lower premiums.

Employer implications

Employers who provide company paid medical insurance might need to budget for premium increases. Employees enrolling in collective plans may opt to switch insurance providers to manage increased cost.