Health Insurance Funds Urge Government to Halt Spending Amid Financial Crisis

The financial health of the statutory health insurance system is in jeopardy, with the funds reporting significant deficits. In light of these challenges, health insurance providers have called on the new government coalition, comprised of the Union and SPD parties, to implement stringent measures aimed at stabilizing the financial situation.

Doris Pfeiffer, the head of the National Association of Statutory Health Insurance Funds, emphasized the pressing need for an expenditure moratorium to prevent costs from continuing to rise faster than income. She stated that such a freeze should remain in place until structural reforms can restore balance between revenues and expenditures.

According to recent calculations, the deficit for the health insurance funds reached EUR6.2 billion last year, surpassing earlier estimates by EUR700 million. Pfeiffer underscored the urgency of the situation, warning that the ongoing trend of increasing expenditures requires immediate action. The health insurance contributions have seen their most substantial hike in over 50 years, rising approximately 1.2 percentage points to an unprecedented average of 17.5 percent.

The potential for further increases in health insurance contributions looms for millions of insured individuals and their employers if the government fails to act promptly. Pfeiffer cautioned that without intervention, the cycle of rising contributions would continue unabated.

She called for a decisive halt to the relentless increase in expenditures, suggesting that an expenditure moratorium would ensure that health insurance funds do not spend beyond their current revenue levels. This measure would provide the government with the necessary time to undertake essential structural reforms.

Pfeiffer highlighted the need for a fundamental shift in health policy, pointing out that the escalating costs are a significant concern. According to her, the current system forces health insurance providers to pay excessive amounts for subpar quality, resulting in a disbalance in the allocation of resources. Over the past decade, the healthcare sector has seen substantial financial gains for hospitals, pharmaceutical companies, and medical professionals, while contributors to the system have faced increasing financial burdens through rising premiums.

Furthermore, Pfeiffer urged the new government to fully fund healthcare provisions for recipients of citizen's benefits through tax revenues. She noted that this initiative was a commitment made by all parties during the electoral campaign and would alleviate the statutory health insurance system's financial burden by approximately EUR10 billion annually, equivalent to about 0.5 percentage points in contribution rates.