Medical Services Received - Healthcare policy turnaround sought by DAK chairman Storm.
The CEO of Germany's third biggest health insurance company, DAK-Gesundheit, Andreas Storm, urges for a major change in the way healthcare and nursing are handled, similar to how security policies have evolved. He believes the issues are severe enough to require a complete overhaul. This change can only happen with more money, says Storm to the German Press Agency. The pending baby boomer phenomenon, to peak in 15-20 years, will place a heavy burden on the healthcare and nursing systems. Both have been significantly underfunded.
Storm targets the insufficient funding from the federal budget for social benefits, as it only covers approximately one-third of the actual expenses. This equals around nine billion euros every year. The health fund in statutory health insurance is assumed by Storm to be around 300 billion euros annually. The funding gap in social benefits corresponds to half a percent increase in the contribution rate.
Furthermore, Storm highlights the disparity in the way the state treats privately insured individuals versus GKV beneficiaries in terms of social benefits. He deems this a "significant political scandal." A socially insured person who is privately insured will shift to the basic package of their insurance. "The state pays three and a half times as much to privately insured people than to the GKV. We're facing a huge injustice," said Andreas Storm from Germany's third largest health insurance company.
The federal government's 14.5 billion euro subsidy for non-insurance benefits has diminished from what it was in 2010, claims Storm. This subsidy is not adjusted dynamically like in pension insurance. Expenses that need to be paid by the taxpayer are rebated to the GKV. This also involves hospital restructuring. The required transformation fund should be funded with 50 million euros in the next ten years. GKV should cover half of this. "This is mismanaging contribution money," adds the health insurance boss. "This is also the view of the auditors."
The Ampel coalition is considering involving GKV in the funding of extra medical study places worth 660 million euros annually, a responsibility of the state, according to Storm. Participation of private health insurance providers in study places or the transformation fund for hospitals is not contemplated.
Storm foresees continual financial strain for health insurance companies in the upcoming years due to medical advancements and population aging. "This is a pressure equivalent to more than half a percent of the contribution rate yearly. By 2035, the GKV's contribution rate would have to rise by close to 2.5 points just for this reason." He argues the need for more government funding in healthcare and nursing insurance, says Storm. Furthermore, the system needs to be modernized and digitized right away. "This is a major leap when the electronic patient file (EPA) for everyone takes effect in the upcoming year." This can lead to considerable savings and enhance the quality of care.
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