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The LKH - private insurance doesn't always work well

No, this post is not about fundamental issues of health insurance, merely an observation on a significant inefficiency at my private German insurer. I thought I had posted some info about the German health system in the past, but I see that isn't the case - definitely something I need to do. But not now. I just want to spout briefly on some annual madness at my German insurer, the LKH (Landeskrankenhilfe).

The LKH actually provides me with excellent health coverage (at a fairly hefty price). On the rare occasions I've had to talk with a representative there they've been friendly and helpful. But they have an amazing systemic flaw. They offer a good deal to policy holders - if you only submit (i.e. mail in, it doesn't work online) bills at most twice a year, they give you a 5% rebate on your tariff for the next calendar year. Given current interest rates that's a decent yield, as long as you can finance your doctor visits and prescription drugs yourself for a six month period. I always try to adhere to this.

Here's the rub - the insurance rates are always set on a January-based calendar year for all insurees, and the cut for the rebate is always September 1st for all insurees. Guess what that means? If you submit your receipts at the beginning of September (as I just did), it takes them at least six weeks to process them, since they're obviously overloaded.

Dear LKH, here's my question to you - why can't you make the September cut more flexible, perhaps making the cut on everybody's birthday? I know, there are some issues with timing in regard to the rates for the following year, but surely that could be worked out and your employees would have a much more even workload - and your service would be better for customers.

Why don't I switch to another insurer? Well, that's a tale for another post...

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