France's Constitutional Council struck down a freeze on health insurance premiums, allowing insurers to raise rates amid rising costs and consumer concerns.
Constitutional Council rejects health insurance freeze
The Constitutional Council ruled on Friday, October 23, that a provision freezing health insurance premium rates for 2026 was unconstitutional. This provision, included in Article 13 of the Social Security Financing Law, had been proposed by Socialist deputy Jérôme Guedj to prevent insurers from raising contributions compared to 2025.Freeze aimed to shield consumers from tax costs
The freeze was intended to stop complementary health insurers from passing on the cost of a new 2.05% tax, which was estimated to cost about one billion euros. The measure sought to protect consumers from increased premiums, but the Constitutional Council found it problematic.Council cites infringement on business freedom
The Constitutional Council determined that the freeze represented a "disproportionate infringement on the freedom to operate and contractual freedom" of the insurers. While it acknowledged the legislative intent to protect consumers, it emphasized that the freeze hindered insurers from adjusting rates to cover rising costs, including those for services provided to policyholders.Debate over freeze lasted over a year
The decision followed a year-long debate since the adoption of Guedj's amendment to the Social Security budget in December 2025. The government had previously warned of the risk of unconstitutionality, and the general rapporteur of the Social Security budget had also raised similar concerns.Most insurers ignored the freeze
Despite the legal freeze, complementary health insurers largely ignored it. A survey by Que Choisir Ensemble in April found that 98.52% of 4,271 insured individuals reported increases in their contributions in 2026. The average increase was 106.21 euros annually, with some individuals facing increases of up to 2,000 euros.Ruling allows insurers to adjust rates
The Constitutional Council's ruling means the freeze is no longer in effect, and health insurance providers are free to adjust their rates. However, the decision does not automatically lead to refunds for those who already experienced increases. The unconstitutionality applies from the date of publication of the decision and is applicable to all cases not finally judged by that date.Future increases expected in 2027
The Addactis barometer predicts a median increase of 8% for individual contracts and 8.3% for collective contracts in 2027. Additional inflationary measures, including reduced reimbursement for certain medicines and dental care, are set to take effect in 2027, potentially increasing the median rate increase to 10%.Experts suggest reviewing insurance options
While some policyholders may consider switching insurers, experts advise reviewing current coverage and considering options such as solidarity health insurance or group contracts offered by municipal mutuals. The ruling highlights the complex balance between consumer protection and the operational freedom of health insurance providers.
