In recent years, a possible risk selection by health insurers targeting foreign seasonal workers has been a topic of discussion in the House of Representatives of the Netherlands. Following the discussion and questions in the House, the Minister has promised to further investigate the possibilities with regard to the risk equalization model for foreign seasonal workers. A study that was done last year has produced evidence that foreign seasonal workers are being overcompensated (see WOR 736). However, the healthcare costs of non-resident foreign seasonal workers are partly unknown at the individual level. This study examines whether it is possible to use the existing data files to arrive at a more reliable estimate of the healthcare costs of non-resident foreign seasonal workers.

It is possible to properly estimate – within certain boundaries – the total costs for non-residents. However, it is uncertain how these costs are distributed amongst non-residents. This is due to the fact that for nearly 50 percent of the costs of non-residents it is unknown which insured person incurs them. This makes it impossible to calculate the healthcare costs for a particular group of non-residents – such as foreign seasonal workers. It is possible, though, to sufficiently reliably determine the (average) overcompensation of the total group of non-residents by calculating the healthcare costs of individuals in various scenarios.

The overcompensation of the total group of non-residents amounts to € 75 to € 667 per insured year, depending on the scenario used. Only non-residents between 18 and 34 years old are overcompensated in all scenarios. The study therefore provides grounds for adjusting the calculation of the normative costs of non-residents of 18-34 years old. The overcompensation of young people of 18-34 years old is estimated to be at least € 313.