To plug a massive budget hole, a government commission has come up with 66 recommendations for how Germany’s public health insurance system could be reformed. Here are the major changes on the table that could affect you.
Germany’s public health insurance system has a problem — it’s increasingly difficult to finance.
Put simply, public expenditure on public health insurance continues to rise quicker than the income it generates. If Germany’s public health insurance system were left as is, this financing gap would be expected to deficits of more than €10 billion each year from 2027 onward.
To try and close this significant financing gap, the federal government appointed a “Health Finance Commission” to draw up proposals. The commission has now presented a report with recommendations for reforms to reduce costs, suggesting the measures could save as much as €42 billion next year alone.
Here are some of the major suggested reforms that would have a direct impact on people who have public health insurance in Germany.
More contributions (and the end of free coverage for spouses)
To balance the books, the commission suggests that more money needs to flow into the health insurance system, including from an increase in patient contributions.
The commission estimates that an additional €4.8 billion can be raised here.
The abolition of free coverage for the spouses of insured workers would be a big chunk of this.
An estimated 1.6 million men and women who have so far been insured free of charge would be affected. They would now need to pay a flat rate of €240 per month. This should not apply to parents of small children and also not to pensioners.
The commission says this would amount to €3.5 billion for the public health insurance system each year.
READ ALSO: Is Germany about to scrap free health insurance for spouses?
Also, a planned increase in contributions from people who work mini-jobs is expected to bring in a further €1.3 billion.
Higher co-payments and less sick pay
Another way patients would be expected to put more into the system would be through higher co-payments and a reduction in sick pay benefits.
The plan includes increasing co-payment limits by 50 percent whilst also decreasing the sick pay entitlement.
The commission suggest both of these measures could amount to €4.1 billion in savings.
Service cuts
Patients would be affected by the cancellation of some services, such as homeopathic medicine, reimbursement for medicinal cannabis, early screenings for skin cancer and a further limiting of orthodontic care benefits.
READ ALSO: What does public health insurance really cover at the dentist in Germany?
The estimated savings of cutting all of these services is predicted to amount to between €100 and €300 million annually.
Consumption taxes
To strengthen efforts to prevent some common and costly medical issues, the commission proposes higher taxes on tobacco and alcohol, as well as a new tax on sugar-sweetened beverages.
The total volume of these taxes is suggested to amount to €1.9 billion annually. This would generate a bit more income for the health insurance system, and is also intended to reduce consumption of unhealthy products.
A change in federal funding
The commission reports that from 2027 alone, the burden on statutory health insurance could be reduced by €12 billion if the federal government were to finance the contributions for citizen allowance (Bürgergeld) recipients from taxpayers’ money.
This proposal comes as the federal government is already pushing forward with plans to reform the Bürgergeld system into an altered “new basic security” (Neue Grundsicherung) benefit.
What happens next?
As of the end of February, German Health Minister, Nina Warken (CDU) had announced that she would put together an austerity package based on the commission report, which would be expected to be adopted by the federal cabinet.
Nina Warken (CDU), Federal Minister of Health, has so far declined to comment on reports that the government is preparing to scrap co-insurance for wives and husbands. Photo: picture alliance/dpa | Michael Kappeler
She has since announced that the law should be in the cabinet by the end of July at the latest.
“We will essentially stick to what the Commission proposes,” Warken said.
Chancellor Friedrich Merz said on Friday that the proposals would be evaluated and decided calmly. He appealed to his own coalition not to reject individual points prematurely.
Merz has described the health insurance reform as the “hardest chunk” of the upcoming social reforms he intends to bring forward this year. Reforms on other social benefits, taxes and pensions are also under discussion.
READ ALSO: Taxes to health insurance – What reforms is Germany eyeing this spring?
The above proposals can be expected to be included in a draft law which would then need to be approved by the federal cabinet and then Germany’s two legislative houses (Bundestag and Bundesrat) before they could be signed into law.
Heated debates on some of the above points, as well as potential changes or compromises, could be expected as that process moves forward.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: thelocal.de
