DKV Insurance has officially announced its decision not to participate in the second bidding for Muface, the health insurance scheme for public officials in Spain. This marks the first time since the inception of public mutualities that DKV will not be involved in providing services to national mutualities. The decision follows a significant financial loss in the previous agreement, amounting to over 70 million euros before taxes. The company has highlighted that the current model is severely underfunded, as stated in their recent communication. In addition to DKV, another major player, Adeslas, has also declared its withdrawal from providing private healthcare services to Muface officials despite a recent increase in premiums by 33.5%. The total funding allocated by the government for Muface over the next three years is 4.5 billion euros, which Minister of Public Administration, Óscar López, has described as an unprecedented effort. He emphasized that an additional 1 billion euros will be allocated to finance Muface, utilizing funds from the General State Budget, aimed at supporting the health insurance of approximately 1.5 million citizens. DKV, which has positioned itself as a strong advocate for public-private collaboration, expressed disappointment that the government's new proposal did not meet their requested requirements. They had sought a 40% increase in funding for a single year; however, the final agreement only reflected a cumulative rise of 33.5% over three years. According to DKV's estimates, the medical expenses during the last contract far exceeded the premiums received. If they were to participate in the upcoming contract period from 2025 to 2027, the anticipated losses for 2024 could range between 70 and 100 million euros, based on current accounting regulations. The CEO of DKV articulated that a responsible and reputable company cannot operate under such conditions, which would ultimately lead to a deterioration in service quality for mutualists and persistently inadequate compensation for healthcare professionals. Currently, three insurers, Adeslas, Asisa, and DKV, provide healthcare services to around 1.5 million individuals, comprising public officials who choose private healthcare funded by the government and their families. With the exits of both Adeslas and DKV, the focus now shifts to Asisa. Although Asisa initially ruled out the possibility of taking on the contract alone during the first bidding, they are now reconsidering this option. Company representatives indicated that their stance may evolve in light of recent developments. In response to the ongoing uncertainty surrounding Muface, the Ministry of Public Administration implemented an emergency extension on December 28, effective from January 1, 2025, to allow for the completion of the bidding process for the subsequent contract. Despite its withdrawal from Muface, DKV remains open to providing international assistance for officials stationed abroad. They maintain that the circumstances in this area differ significantly, as they were the sole insurer to participate in the previous bidding process. DKV noted that the new tender did not accommodate their demands, which included a premium increase of 30.35% and a one-year contract duration; however, they are still hopeful about reaching an agreement that would enable them to continue offering services in 2025, provided there is adequate cost coverage.