Politics · Germany · 22 hrs ago
Germany’s plan to hold health insurance contributions faces a financial test
Germany’s governing coalition has agreed on savings intended to stop statutory health insurance contributions from rising in 2027.
The plan counts on €18.8 billion in savings to cover a funding gap of the same size, with no extra cushion for unexpected costs.
The government has also promised €550 million more for hospitals than first planned, and some proposed spending limits may be eased.
A group of experts is due to forecast insurers’ finances for 2027 on Wednesday, and the forecast will test whether the savings are enough.
The plan includes limits on spending growth for medical practices, hospitals, pharmacies and drug companies, as well as higher medicine co-payments and limits on free insurance for spouses.
The government’s target is an average additional contribution of 2.9%, but current contributions average 3.1% and vary among the 93 insurers.
After the forecast, the health ministry is due to set an average contribution benchmark by November 1, and each insurer will decide whether to change its own additional contribution.
Germany’s coalition is relying on a €18.8 billion savings package to try to prevent statutory health insurance contributions from rising in 2027.
A financial forecast expected on Wednesday will test whether the planned savings can cover an estimated funding gap of the same size.
The package includes limits on spending by health care providers, higher medication co-payments and restrictions on free coverage for spouses.
The coalition has also promised hospitals an additional €550 million, while some planned spending limits may be eased.
The target is an average supplementary contribution of 2.9%, although current contributions average 3.1% across Germany’s 93 health insurers.
- Who
- Germany’s governing coalition and statutory health insurers are central to the plan.
- What
- The coalition is seeking to hold health insurance contributions steady in 2027 through a savings package.
- When
- A financial forecast is expected Wednesday; the target year is 2027.
- Where
- Germany.
- Why
- The package is intended to cover an estimated €18.8 billion funding gap and prevent contribution increases.
Statutory health insurers
Germany’s governing coalition
Funding margin
Statutory health insurers
Insurers warn there is “not a millimeter of room” in the savings plan.
Germany’s governing coalition
The coalition’s package aims to cover the estimated gap and prevent contribution increases in 2027.
Additional costs
Statutory health insurers
Insurers face the financial consequences of spending commitments and possible easing of spending limits.
Germany’s governing coalition
The coalition has promised hospitals an additional €550 million and is seeking further savings to offset costs.
no millimeter of room
The coalition promised the states an additional €550 million for hospitals compared with its earlier plan.
The coalition put forward further changes to its savings package, which it plans to attach to an emergency reform bill.
A financial forecast for 2027 is expected to assess whether the planned savings can cover the funding gap.
The emergency reform bill is expected to come before the Bundestag for a vote.
The ministry is due to set an average supplementary contribution figure for 2027.
- Planned savings
- €18.8 billion
- Estimated funding gap
- €18.8 billion
- Additional hospital funding
- €550 million
- Target average supplementary contribution
- 2.9%
- Current average supplementary contributions
- 3.1% across 93 insurers
Sources
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