DKV, the Spanish subsidiary of the German insurance group, has announced its formal decision to withdraw from its commitment to provide private healthcare insurance to 240,000 civil servants under the national scheme Muface.

This decision was confirmed by DKV on Thursday, aligning with earlier reports from late December.

DKV's exit means that these public servants and mutualists will need to seek alternative healthcare options unless the government can offer improved economic terms.

The decision follows a similar move by Adeslas, leaving Asisa as the sole potential contender for the second tender of the mutuality system.

However, Asisa has expressed its hesitation, stating that it must further evaluate the situation, having previously declined the first tender to avoid becoming the monopoly provider in a highly pressured segment serving over a million public employees.

According to DKV, the new contract's losses, exacerbated by the regulations of the IFRS17 accounting standard, would have amounted to between 70 and 100 million euros, an addition to the 70 million already lost over the past three years.

"The model is underfunded," declared Fernando Campos, CEO of DKV, highlighting the substantial disparity between the medical service expenditures and the premiums received in recent agreements.

Campos emphasized that the continuation under current conditions is untenable for the company, as it would lead to degraded service quality and inadequate compensation for healthcare professionals.

DKV remains an advocate of the public-private collaboration model and has offered a temporary one-year extension for Muface's international scheme to give the government time to formulate a solution for the overseas civil servants.

DKV noted that over the past decade, per capita health expenditures across autonomous communities and collaborating mutuals have surged by 60.6%, whereas Muface's weighted premium has only increased by 31.6%, illustrating a continuing financial imbalance.

Despite extensive efforts to work with the system, DKV criticized the new concert proposal for lacking the essential conditions such as a one-year agreement, a 40% increase in premiums, and an alignment of the model with rising public healthcare costs.

As of now, DKV has informed its members about the stipulated timelines for changes, noting that updates may occur.

From January 1 to 31, those affected can switch to the public health services in the autonomous communities and Ingesa in Ceuta and Melilla, as per the agreement terms.

Subsequently, when the new concert takes effect, there will be an additional window for switching between public and private entities.

In the wake of DKV's announcement, the public sector union CSIF has issued a strong response, threatening legal action against Muface and the insurance entities, while holding the government accountable for an alleged dereliction of duty.

CSIF demands a prompt solution from the government, expressing dissatisfaction with what it perceives as a lack of political will and transparency about Muface's viability, despite reassurances from Minister Óscar López.

The union warns that, despite government claims that medical services will continue until at least April, there are emerging issues.

CSIF plans to guide its mutualist members in pursuing legal recourse to safeguard their rights and seek redress for healthcare disruptions, citing instances where clinics and hospitals have halted consultations and procedures, defying recent government mandates for continued medical coverage.

The union asserts that Muface bears responsibility for ensuring contracted entities uphold their service agreements.