Joint health insurance companies express concern over rising expenses: “We are spiraling out of control”

Joint social protection groups, co-managed by employers and unions, are concerned about a further decline in their supplementary health results due to the continued increase in French health spending. Marie-Laure Dreyfuss, the general delegate of the CTIP, which represents these groups, highlighted this issue during the presentation of the sector’s annual results.

In 2023, CTIP members experienced a 6.6% increase in “health” reimbursements to 6.7 billion euros, while their contributions only rose by 6% to 7.5 billion euros. This imbalance is causing a loss of nearly 4 euros for every 100 euros in contracts sold, according to Dreyfuss.

The increase in joint supplementary health spending is mainly driven by rising medical fees, with a 16.9% increase in 2023. Costs for optics and dental care also significantly contributed to the growth, with increases of 22.4% and 19.8%, respectively.

Despite the challenges in the health sector, joint groups have managed to remain profitable by leveraging their financial products and pension activities. In 2023, they generated a net profit of 624 million euros, representing 3.4% of their turnover, indicating improvement compared to previous years.

In addition to health activities, personal protection and supplementary pension activities also saw growth in turnover. Personal protection activities saw a 10.6% increase to 7.8 billion euros, while contributions to the supplementary pension activity rose by 8.7% to 1 billion euros.

Overall, the joint social protection groups are facing challenges in the health sector but have been able to maintain profitability through diversification and strategic financial management.