Until 31 December 2005 Dutch health insurance was divided into a collective and a private part. The collective part was based on the Compulsory Health Insurance Act (ZFW) and the Exceptional Medical Expenses Act (AWBZ) The private part consisted of private and compulsory health insurance (IZA/IZR). As of 1 January 2006 Dutch health insurance is divided into a collective and a private part. The collective part is based on the Exceptional Medical Expenses Act (AWBZ) and the basic health insurance under the new Health Insurance Act (Zorgverzekeringswet) which pays out in kind. The private part consists of additional insurances which pay out in cash.