| provide a standard package of insured treatments and medications.
Legislation has been put in place to ensure that premiums are set at a flat rate for all residents, no matter old or young, sick or healthy. Insurance providers must not refuse any new purchase or impose additional conditions (e.g., exclusions, deductibles, co-pays, or refuse to fund doctor-ordered treatments) to any new application of insurance coverage. Children under 18 are insured by the government and for residents who may not have sufficient funds, special government assistance is available.
A key feature of the Dutch system is the creation of risk equalization pool. This makes it possible to apply a flat rate as the risk variances presented by individual insured residents are compensated through risk equalization. The objective is twofold in that policyholders will not be penalized for their age or health status, and insurers will not reject risky clients.
Funding for this private healthcare system is 50% from employers, additional 45% as premiums collected by the insured, and the final 5% contributed through government fund. The average premium charged by the insurance companies is about 100 pound every month (+/- 5% due to the competitions).