The escalating cost of private health insurance in Greece has reached a critical point, as citizens already grappling with inflation, low wages and diminishing purchasing power are increasingly forced to abandon their coverage.
Amid mounting pressure to curb soaring premiums and stabilize the sector, the Greek government faces the dual challenge of providing access to affordable healthcare while tackling systemic inefficiencies and inequities.
Key Takeaways for Readers:
- Greeks spend approximately €5-6 billion annually out-of-pocket on private healthcare expenses.
- Greece ranks second among EU-27 countries in private health expenditure
- Premium hikes of 12%-14% annually are leaving many unable to afford private insurance.
- The government plans to introduce a new pricing index in 2026 but faces criticism for delays.
- The DRG system could help stabilize medical costs but requires urgent implementation.
- Private clinics and insurers blame each other for the rising costs, while citizens bear the burden.
Unaffordable Premiums: A Growing Burden in a Broken System
For years, private health insurance has served as a crucial safety net for Greeks seeking reliable—yet comparatively affordable—healthcare outside the country’s overburdened and deteriorating national public health system.
However, steep annual premium increases of 12%-14% have left many policyholders struggling to keep up with the rising costs, forcing some to cancel their policies entirely.
A closer examination of healthcare spending in Greece highlights a system that is already a heavy financial burden for its citizens. Greece ranks second among EU-27 countries in private health expenditure, with private spending accounting for 34% of total health costs—more than double the EU-27 average of 15%.
According to the Hellenic Statistical Authority (ELSTAT), Greeks spend €5-6 billion annually on private healthcare, with over €4 billion allocated to hospitalizations, diagnostic tests, and doctor visits. Alarmingly, only 15%-17% of these costs are reimbursed by private insurers, as reported by To Vima.
Government Intervention: Promises of Regulation
In response to public outcry, Development Minister Takis Theodorikakos announced a legislative initiative to cap premium increases on lifetime health insurance contracts. The plan includes introducing a new pricing index by ELSTAT based on scientific data, replacing the outdated IOBE index that has been used thus far. However, this new measure will only take effect in January 2026, raising concerns about its timeliness.
Meanwhile, PASOK, Greece’s center-left party, has criticized the government for its delayed response, accusing it of failing to prevent the increases, while other critics say the government is ‘reactive’ as opposed to ‘proactive’. PASOK has promised to raise the issue in Parliament, signaling that the health insurance crisis will remain at the forefront of political debate.
The ‘Source’ of the Problem
Insurance companies justify their rate hikes by citing the rising fees charged by private health providers. However, in an effort to control costs, insurers have faced accusations of denying reimbursements for necessary treatments, delaying payouts, and even blocking access to innovative medical procedures.
A report by To Vima highlights a troubling case in which a policyholder’s thyroid surgery claim was denied because preventive tests conducted five years earlier—unrelated to the surgery—showed no issues at the time.
On the other side, representatives from private clinics defend their practices, asserting that their fee increases to insurers have been modest, ranging between 2%-3%. This claim, however, is strongly disputed by the insurance sector. Meanwhile, Greece’s National Health System (EOPYY) has also accused private hospitals of overbilling, adding another layer of complexity to the ongoing debate, while patients at hospitals reveal itemized bills for surgeries detailing ‘outrageous’ charges.
Clinics, that are largely on the defensive, are also advocating for a reevaluation of the 24% VAT on private health services, which they say further inflate costs for patients.
Part of the Solution? The DRG System
In an effort to stabilize the situation, the Development Ministry has sought assistance from the Health Ministry for standardized cost evaluations of medical procedures and hospitalizations. Discussions involve expediting the Diagnosis-Related Groups (DRG) system, which groups patient cases based on specific criteria for streamlined pricing.
The Health Ministry stated the DRG system has been implemented in public hospitals since early 2025 but remains incomplete for private clinics. Collaboration agreements exist between DRG developers and private clinics, aiming for implementation within 2025, but in order to be implemented clinics must provide necessary data for coding and pricing.
A Global Issue
From Greece’s €6 billion private health expenditure to global struggles with rising premiums cited by organizations like the OECD and the WHO, one theme is clear: affordable quality healthcare is a universal issue.
Whether through subsidies, technology-driven reforms, or stricter regulation, countries are grappling with ways to balance costs and fill the gaps left between public and private systems, while ensuring equitable access to all citizens.
