The Federal Authority is seeking billions from its own Federal Counterpart for COVID-19 measures.
It looks like the federal government could be in for an additional financial burden in their budget negotiations. According to a new legal opinion, the state's coronavirus policies have been using funds from contributors, and a refund of approximately 6 billion euros is now required.
Health insurance company DAK-Gesundheit, as reported by the German Press Agency (dpa), has deemed it unconstitutional to use contribution funds for coronavirus measures, as it amounts to misusing funds. Lawyer Dagmar Felix from the University of Hamburg argues in the opinion that access to social insurance contributions should not be allowed for this purpose, as it would essentially use these contributions to finance the general state budget.
The coronavirus pandemic has resulted in additional costs of around 13 billion euros for nursing care insurance, as per DAK. The federal government has only compensated for a portion of these costs, leaving a remaining balance of around 6 billion euros.
Lack of reimbursement could lead to increased contributions
The issue of full compensation is crucial due to the financial struggles of the nursing care insurance. Health insurance companies are predicting that a contribution rate increase of at least 0.2 percentage points will be necessary by early 2025.
Andreas Storm, chairman of the DAK board, believes that if the federal government fully reimburses the coronavirus costs, they could avoid this increase. "Our legal opinion is clear: There was a misuse of contribution funds during the pandemic, which must now be corrected in light of our current financial problems," he told dpa. He warned, "If the necessary financial means in the amount of 6 billion euros are provided this year, the looming contribution increase at the turn of the year can be avoided for policyholders." The traffic light government aims to pass their 2025 budget by mid-November.
The Commission should consider the legal opinion that states the misuse of contribution funds for coronavirus measures by the state, as it may require a refund of approximately 6 billion euros. If the federal government fails to provide the necessary financial means to avoid the contribution increase, The Commission might face increased contributions from health insurance companies like DAK-Gesundheit.
