The Jetten I Cabinet’s plan to raise the healthcare deductible by €60 next year will lead to lower health insurance premiums, the Telegraaf reports based on new calculations from the Netherlands Bureau for Economic Policy Analysis (CPB). Citizens won’t notice the lower premiums as they’ll be offset by higher income tax.

The minority government’s plan to hike the deductible is meeting fierce resistance from opposition parties, healthcare organizations, and patient groups. But the CPB expects it to work out well for the healthcare system.

The CPB expects the higher deductible to decrease pressure on the healthcare system somewhat. Paying a larger amount up front would discourage people from seeking unnecessary care.

That is the complete opposite of the previous government’s plan. PVV Health Minister Fleur Agema wanted to cut the healthcare deductible by more than half, lowering it from €385 per year to €165 per year. The CPB calculated that this would have resulted in a significant increase in health insurance premiums due to a much higher demand for healthcare.

That plan also met with fierce resistance, and the caretaker Cabinet eventually shelved it.

According to the government’s main advisory body on new policy, from 2031 onwards, the higher deductible will result in health insurance premiums being approximately €300 cheaper per person per year. That is compared to calculations that still included Agema’s proposal.

Netherlands residents won’t notice the lower health insurance premiums in their wallets. Where the previous Cabinet intended to offset the higher premiums with tax reductions, the new Cabinet has agreed to fully neutralize the lower premiums with a higher income tax.

The Jetten I Cabinet is facing a major budget deficit due to the need to increase Defense spending, among other things, so it’s taking easy cost savings wherever they arise. The government will figure out exactly how to implement the higher income tax in the coming months.