Controversial Loans Spark Outrage Among Health Insurers

The Federal Cabinet is set to approve the draft budget for 2026 today, which includes a proposal for the federal budget plan for the fiscal year 2026 and a financial plan extending from 2025 to 2029. In response to escalating costs in social systems, including pensions, healthcare, and long-term care, the Union and SPD have agreed to establish reform commissions. These commissions are expected to deliver results that could alleviate pressure on the federal budget. For the statutory health insurance and long-term care insurance, no additional tax funds beyond the regular federal subsidy of EUR14.5 billion are anticipated. Instead, the plan includes two loans: EUR2.3 billion for statutory health insurance (GKV) and EUR1.5 billion for long-term care insurance (SPV). The response from health insurers has been one of outrage. The CEO of the Techniker Krankenkasse (TK) has proposed that to address the mounting financial challenges faced by statutory health and long-term care insurance, the government should increase the discount manufacturers are required to provide and reduce the VAT on medications and medical aids. Furthermore, it has been asserted that the state must fulfill its financial obligations by ensuring adequate contributions for recipients of basic income support, as it reportedly owes the statutory health insurance approximately EUR10 billion annually. The government is urged to take action, as the burden on both insured individuals and the economy cannot continue indefinitely. Health insurers have voiced significant concerns, highlighting that loans will not resolve the underlying issues. The funds earmarked for health insurance may be insufficient to stabilize contributions at the start of the new year, and these loans will have to be repaid. The BKK Dachverband, representing 64 company health insurers and about 9.6 million insured individuals, echoed these sentiments, stating that the GKV is left bearing the costs for individuals receiving basic income support. The long-term care insurance will not receive compensation for pandemic-related expenses and must continue to cover pension contributions for caregivers without state support. These responsibilities are deemed non-insurance-related tasks that should be financed through tax revenue. The BKK Dachverband noted that, similar to this year, loans will be provided for the GKV and SPV in 2026, which may temporarily secure liquidity but do not address the fundamental financial instability. The statutory minimum reserves of health insurers remain significantly depleted, despite record contribution rates this year. The situation is expected to worsen, with indications of potential future increases in contributions. Even the Chancellor has begun to prepare the public for this eventuality. The pressing need for financial stabilization has been described as having failed, underscoring the urgent need for a more sustainable solution to the financial challenges facing the healthcare system.