How will health insurance in Germany become more expensive in 2024? Starting next year, additional contributions to mandatory health insurance in Germany will be increased by 0.1%, announced the Minister of Health, Karl Lauterbach (SPD), earlier this week.
As a result, contributions will reach the highest level in history at 1.7%.
At present, contributions to mandatory health insurance are set at 14.6%, and additional contributions (set by health insurance companies) can reach up to 1.6%.
How will health insurance prices change in Germany in 2024
Not all insurers choose the maximum additional contribution set by the government. For example, Techniker Krankenkasse currently charges 1.2%, while Barmer charges 1.5%.
This means that next year, not everyone with mandatory health insurance will experience an increase in expenses, but some insurers are likely to opt for additional income.
For most employed citizens, this means that an additional 0.05% of their income will go towards health insurance (5 cents per 100 euros of earnings), and the remaining 0.05% will be covered by the employer.
Freelancers, who typically pay half of the contributions as both employer and employee, will receive an additional 10 cents per 100 euros, which will go towards their health insurance.
Mandatory insurance funds are required to inform their clients in advance about the increase in tariffs, and clients are granted "Sonderkündigungsrecht" or special termination rights.
Financial deficit
The announced increase in additional contributions comes after months of debate on how to fill the financial "black hole" in Germany's healthcare system.
After the COVID pandemic, Health Minister Lauterbach has been trying to find ways to sustain Germany's healthcare system in the face of staff shortages and a massive deficit.
This year, the historic deficit of the compulsory insurance funds (GKV) amounted to 17 billion euros, and health insurance funds also faced a shortage of 4.5 billion euros.
Back in June, Lauterbach stated that a price hike was "inevitable" as Finance Minister Christian Lindner (FDP) refused to increase government subsidies for healthcare this year and the next.
The Social Democrat and former doctor had previously presented a package of measures for financial stabilization, including an increase in additional contributions, allocating 14.5 billion euros from the treasury, and the mandatory introduction of pharmaceutical discounts on drugs.
He repeatedly ruled out the possibility of cutting healthcare expenses.
"The Financial Stabilization Act, passed last year, has taken effect," he said. "Health insurance contributions will hardly increase. This strengthens trust in social security systems."
It is expected that this step will cover at least 1.6 billion euros out of the 3.2 billion euros needed next year.
However, the rate hike has faced sharp criticism from Steffen Kampeter, the General Director of the Confederation of German Employers' Associations (BDA).
"Work should be more attractive and interesting in itself", he told the newspaper. "Rising contributions to social insurance spoil this joy".
According to Kampeter, without reforming the health insurance and sickness insurance systems, trust in social security systems will decline.
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Despite the upcoming increase in health insurance contributions in Germany, not all insurers will opt for the maximum additional income. For instance, Techniker Krankenkasse currently charges 1.2%, while Barmer charges 1.5%. However, this rise in contributions could lead to decreasing trust in social security systems, as pointed out by Steffen Kampeter, the General Director of the Confederation of German Employers' Associations.
