More than halving the health insurance own risk payment of €385 will increase premium costs by €199 per person per year, cabinet sources have told the Telegraaf.

The right-wing cabinet’s coalition agreement includes a pledge to cut the amount people pay towards regular treatment before insurance kicks in, reducing it to €165 from 2027.

Ministers are due to discuss the plans shortly, but legislation drawn up by health minister Fleur Agema will lead to monthly premiums rising by more than €16, the paper reported, quoting health ministry sources.

People in poor health and on low incomes who receive healthcare benefits will not be affected by the premium increase. However, those who rarely claim and earn too much to qualify for benefits will bear the brunt, insiders say.

Health ministry officials estimate that people who qualify for healthcare benefits — those earning up to €40,000 a year — and who use up their entire own risk payment, will benefit by around €115 a year.

Experts have also warned that reducing the own risk threshold is likely to increase demand for healthcare services and therefore overall costs.

The projected premium rise of €16 per month does not include any additional increases to cover the annual rise in healthcare costs, which are usually between €8 and €10 a month.