Sound the Alarm: Daunting Increases Ahead for Health and Long-Term Care Insurance Contributions
Proposals Already Introduced by the Commission for This Purpose
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At the start of this year, insurance contributions skyrocketed due to the extra contributions demanded by health insurance funds. And trouble's brewing, as warned by an expert report, as further burdens may loom in the future. The DAK demands increased federal subsidies and strongly condemns the proposed loans from the Union and SDP.
In Berlin, DAK board chairman Andreas Storm pointed out the need for a stability pact with long-term, increased subsidies from the federal government for health and long-term care insurance, along with income-oriented spending policies. The gritty details come from a study by the Berlin Iges Institute commissioned by the DAK. This research predicts a 0.2% increase in contributions for statutory health and long-term care insurance at the beginning of 2026, another 0.3% increase for health insurance, and a 0.2% jump for long-term care insurance in 2027.
Impending contributions for insured individuals and companies would see a sharp uptick as a result. According to the study, without proper measures, health insurance contributions may soar to around 20% by 2035. This rise comes from the current general contribution rate for statutory health insurance standing at 14.6%, plus an average real additional contribution from the funds amounting to 2.9%.
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Storm criticized the federal government's budget planning for healthcare, stating that the planned loans for health and long-term care wouldn't stop the escalating contribution spiral for insured individuals and companies. He referred to these loans as a mere "flash in the pan" and warned that they would trigger a "yo-yo effect," potentially jeopardizing the functionality of Germany's social insurance system.
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In contrast, Federal Finance Minister Lars Klingbeil's plans include loans of 2.3 billion euros each for health insurance in the years 2025 and 2026, with 0.5 billion euros in 2025 and 1.5 billion euros in 2026 for long-term care insurance. According to the Iges study, a permanent federal subsidy of ten billion euros per year is proposed for statutory health insurance starting in 2026, covering the cost of insuring citizens receiving basic security benefits.
The study also recommends a one-time subsidy of 5.2 billion euros for 2026 to offset burdens from the COVID-19 pandemic, aiming to permanently stabilize contribution rates.
Germany's public health and long-term care insurance systems face spiraling costs due to demographic changes and rising medical expenses. To maintain the sustainability of these systems amid an aging population, there's a call for investments in preventive healthcare, care efficiency improvements, care sector reform, limiting service expansions, and adjusting contribution structures. The need for these solutions is stressed, as current projections suggest that public health insurance contribution rates could jump significantly by 2050—from about 17% today to potentially between 25% and 32% of gross salary—if no effective interventions occur.
Sources: ntv.de, rog/AFP
Enrichment Data:The DAK and the Iges Institute have proposed several solutions to prevent further increases in health and long-term insurance contributions in Germany, focusing on addressing the structural challenges of the public health insurance system. Key proposed solutions include preventive healthcare, care efficiency improvements, care sector reforms, limiting service expansions, and adjusting contribution structures. These strategies aim to maintain the sustainability of Germany's statutory health insurance and social long-term care insurance systems amid demographic pressures. Without effective interventions, public health insurance contribution rates might rise to as much as 32% of gross salary by 2050.
- The DAK, in collaboration with the Iges Institute, has proposed several solutions to prevent further increases in health and long-term insurance contributions, focusing on preventive healthcare.
- Vocational training programs could be integrated into the community policy to promote health and wellness, with a focus on educating individuals about nutrition and fitness-and-exercise.
- With the growing number of chronic diseases, such as chronic-kidney-disease, medical-conditions, and chronic-diseases, it is crucial to invest in science and research to develop effective treatment options.
- To maintain the sustainability of Germany's statutory health insurance and social long-term care insurance systems amid demographic pressures, it is important to implement reforms in the care sector, limit service expansions, and adjust contribution structures.
