The Spanish government has approved a historic 41.2% increase in funding for Muface, the mutual health insurance system serving 1.53 million public employees and their families.

This decision follows two failed bidding rounds and growing pressure from insurers and unions.

The new agreement raises the average premium to €1,450 per member for the 2025-2027 period, up from €1,032, to retain private insurers like Adeslas and Asisa.

The move aims to prevent losses for insurers, who had previously deemed the terms unsustainable.

While the government will spend €4.8 billion over three years, it argues this is still cheaper than public healthcare costs.

Insurers have welcomed the changes, signaling a likely continuation of private coverage for Muface members.