CAK Administrative Premium
The CAK administrative premium is an additional surcharge levied by the Central Administration Office (CAK) on residents of Rotterdam with arrears in their health insurance premiums. This sanction discourages non-payment and ensures insurance coverage for everyone in Rotterdam. The CAK collects on behalf of health insurers pursuant to the Health Insurance Act (Zvw). This article explains the rules, your rights as a resident of Rotterdam, and practical steps for those living in the Maasstad.
What does the CAK administrative premium entail?
This premium serves as an administrative penalty for insured individuals who fail to pay the nominal health insurance premium on time or at all. After six months of arrears, your health insurer can transfer the claim to the CAK. The CAK then collects the arrears, current premiums, and a surcharge. In 2024, this amounts to €75 per month, on top of the nominal premium of €144. Objective: improve payment behavior and prevent uninsured residents in Rotterdam, where flexible jobs in the port can lead to payment difficulties.
You will notice it when a 'decision to collect' arrives from the CAK, stating the total amount including the surcharge. Failure to pay may result in enforced collection, such as garnishment of wages or benefits.
Legal basis of the CAK administrative premium
The legal framework is set out in the Health Insurance Act (Zvw), including:
- Article 68 Zvw: Transfer of premium claim to CAK after six months of arrears.
- Article 69 Zvw: Determination and collection of surcharge, max. €75 per month (subject to indexation).
- Article 66a Zvw: Obligation to take out insurance and pay premiums.
- Article 70 Zvw: Cessation of collection after arrears are cleared.
Procedures are governed by the General Administrative Law Act (Awb). The CAK is an administrative authority, so its decisions are subject to administrative law, not private law disputes.
How does the CAK determine and collect the premium?
- Detect arrears: Health insurer transfers after reminders.
- CAK reminder: 8 weeks to pay independently.
- Collection decision: CAK formalizes the debt including surcharge.
- Enforced collection: Bailiff, wage garnishment, or suspension of benefits via the municipality.
Example for Rotterdam: For €1,200 in arrears (10 months × €120), the CAK collects this plus €75 extra. You then pay €219 monthly (nominal + surcharge) until the balance is zero.
Rights and obligations regarding the premium
Rights
- File objection: Within 6 weeks of the decision (Awb art. 6:3), e.g., with proof of payment.
- Appeal to Rotterdam District Court: After objection is rejected, within 6 weeks at Rotterdam District Court (administrative law division).
- Interim relief: Request suspension of collection (Awb art. 8:81).
- Remission: Apply to CAK if low income; consult Legal Aid Office Rotterdam for assistance.
Obligations
- Pay promptly to avoid issues.
- Report changes in income or address to CAK and health insurer.
- Arrange a payment plan if necessary.
Rotterdam case example: Ms. De Vries from Rotterdam-Feijenoord had arrears due to temporary unemployment in the port. After transfer, she filed an objection with income details via Legal Aid Office Rotterdam. The CAK reduced the surcharge and granted deferral, preventing garnishment of her benefit.
Comparison: Standard vs. CAK administrative premium
| Aspect | Standard premium | CAK Administrative Premium |
|---|---|---|
| Collection | Health insurer | CAK (after transfer) |
| Amount 2024 | €144/month | €144 + €75 = €219/month |
| Procedure | Private law | Administrative law (objection/appeal) |
| Sanction for non-payment | Reminder | Enforced collection, garnishment |
Frequently Asked Questions
Can I avoid the surcharge as a Rotterdam resident?
Yes, arrange a timely payment plan with your insurer before CAK transfer. Transfer is mandatory after six months. See health insurance premium arrears or call Legal Aid Office Rotterdam.
What if I have payment problems?
Request remission or deferral from CAK with income details. If approved, the surcharge decreases or stops. Assistance available via Legal Aid Office Rotterdam or Municipality of Rotterdam.
Objection to CAK decision?
Submit objection letter to CAK within 6 weeks, including arguments and evidence. Decision within 6-12 weeks; then appeal to Rotterdam District Court. Keep all records.
Does the premium stop with a new insurance policy?
No, it continues until the debt is cleared, even if you switch insurers. Notify CAK of any arrangements.
Tips for Residents of Rotterdam
- Prevent transfer: Use direct debit and review your policy annually.
- Contact Legal Aid Office Rotterdam immediately if problems arise (free advice).
- Check with Municipality of Rotterdam for special assistance with premiums.
- Document all payments and correspondence.