- In 2025, insurance providers encounter elevated premium expenses.
In the electoral year of 2025, many insured individuals might need to shell out more for their health and care insurance, according to Health Minister Karl Lauterbach of the SPD. He mentioned to "Der Spiegel" that a hike in the contribution rate is likely. This rise is due to the planned overhaul of hospitals, Lauterbach explained, stating that this stage necessitates investments from both the government and the contributors. He believes that these investments will eventually foster reforms that will control long-term cost escalation and improve the system.
Responding to queries about the burden on contributors, Lauterbach acknowledged, "You're right." However, he emphasized that they would also enjoy enhanced healthcare service, such as improved heart disease or cancer treatments. "I don't wish to strip the system bare. We require these investments," Lauterbach asserted.
This year, the mandatory additional contribution by statutory health insurers for their members went up by 0.1 percentage points to an average of 1.7%. This sum, shared by employers and employees, also consists of the general rate of 14.6% of gross wages. With a membership of over 58 million individuals and 16 million co-insured, the statutory health insurers spend almost 300 billion euros annually on performance expenditures.
Critics, however, are not in agreement with Lauterbach. The association of statutory health insurers remarked that instead of a concrete plan to stabilize the system financially, Lauterbach seems to be fine with perpetuating mounting additional contributions. Similarly, the German Social Association argued that the increased expenses should not solely fall on the shoulders of contributors; tax funds should also be utilized for financing.
According to the association, a rise of no less than 0.6 percentage points might be essential at the start of 2025 due to growth in costs and hospital reform expenses. In the first quarter of 2024 alone, the insurers reported a deficit of 776 million euros.
"The most expensive health minister in history"
The long-term care insurance predicts red figures for 2024 and 2025. In the coming year, this would theoretically necessitate an increase in the contribution rate of 0.2 points, as calculated by the association of statutory health insurers, which also represents the long-term care insurers. The head of the Federal Association of General Local Health Insurers (AOK), Carola Reimann, criticized Lauterbach for continuing to spend contributors' money while the costs risk spiraling out of control. The Swiss cheesing of contributions under Lauterbach may earn him the title of "most expensive federal health minister in history."
Germany, with its aging population, is confronted with higher expenditures due to increasing demands for care and healthcare - medicines, treatment methods, care personnel, and overhead costs like energy. There are also numerous projects aimed at enhancing care, from emergency treatment to bigger reimbursements to preserve the GP network, to more prevention against heart attacks. On the other hand, savings are also projected.
A second healthcare reform is on the horizon
Both Lauterbach and Chancellor Olaf Scholz (SPD) have ruled out performance cuts for insured individuals despite the challenging financial landscape. A further stabilization measure for care is planned, following the coalition's execution of an initial one. This move alleviated burdens on individuals in need of care in terms of personal contributions but also increased the contribution: For those without children, it climbed to 4% in mid-2023, and for contributors with one child, it soared to 3.4%. Families with at least two children currently pay less than before in relation to the employee's share.
Despite the potential increase in health insurance contributions due to the SPD's proposed hospital overhaul, Health Minister Karl Lauterbach assured that the investments would result in improved healthcare services, such as advanced heart disease and cancer treatments. In response to critics arguing that the additional burden should not solely fall on contributors, Lauterbach emphasized the importance of these investments for the long-term stability and improvement of the healthcare system, thereby rejecting the label of "the most expensive health minister in history."
