The health care insurance premium paid two times sounds unbelievable, but it is indeed true. What is this about?
Health care insurance premium paid two times
The health care insurance premiums is paid two times by you and that is correct! The health care system is rather expensive in the Netherlands. As Government, what do you do to hide this? Indeed hide it. About a decade or more ago the one part of the health care insurance premium paid via your employment was shown on your salary specification. Next to that premium, you had to pay a premium yourself.
Obviously people started to complain about the amounts involved. Or even worse, assumed the employer was taking care of the health care insurance premium, hence they cancelled their own health care insurance.
To keep the peasants stupid, it was decided no longer to show the health care premium the employer pays, on the salary specification.
What is the situation?
The situation is that based on a percentage of your salary. Up to EUR 71.628 (2024) salary you contribute 6,57% health care premium paid via your employer. Next to that amount you take out a monthly health care premium yourself.
The employer withheld premium is paid to one big bucket with the tax office. The health care organizations take from that amount what they are entitled to. The insurance you take out yourself is in the basics the same, but you can take out additional coverage. If you expect to be with child, you choose related aspects, if you are far away from that and old, you chose other options like physio. All at a cost.
As an employee you are kept stupid, hence you only see that what you pay yourself every month, is your contribution.
What is the situation of the entrepreneur?
The entrepreneur has no employer, does the entrepreneur than only pay one time the premium? No. The lack of employer does not make the employers part of the health care insurance unpaid. The tax office issues to the entrepreneur a separate assessment for this premium. The percentage is 5,32% up to EUR 71.628 taxable income (2024).
The keep them stupid game cannot be played now, as it is clear to the entrepreneur the premium is one time paid via this tax office assessment. And one time directly to the health care insurance company.
Confusion with entrepreneurs about double health care premium
Due to the fact that as an employee, the double health care premium is not shown, the former employee now entrepreneur is confused. So much confused, that we see some cancelling their private health care insurance. The logic is that they already pay via the tax office.
We understand the logic, as the double payment is hidden when you are an employee. It takes a lot of effort from our side to have them reinstall the private health care insurance. And paying two times for the health care insurance is not well received.
Tax is exciting
We think tax is exciting. To match the books of the Government suddenly the tax assessment can also be a health care insurance contribution tax assessment. This is never received with excitement, nearly always with confusion. We understand from the Government side that hiding something is convenient. However, it also gives the impression that what every employee pays per month is the cost of our health care system. An employee could agree with that, but probably not if the amount is paid two times. The entrepreneur is very much aware of the expense of our health care system.
