The head of Techniker Krankenkasse (TK) has forecasted an increase in statutory health insurance contributions beginning next year, with the average rate expected to rise slightly above three percent. This projection is based on the current financial outlook for statutory health insurers in Germany, as well as stalled cost-saving measures proposed by the federal government.

According to TK, the German healthcare system is facing ongoing financial pressures. Rising healthcare expenditures, combined with insufficient legislative measures to curb costs, are compelling insurers to consider higher contribution rates for both employees and employers. The statutory health insurance system, which covers the majority of the population, is funded by a general contribution rate of 14.6 percent, split equally between employers and employees, with an additional supplementary contribution set by each insurer.

Government Cost-Saving Plans Delayed

The Federal Ministry of Health had introduced a cost-saving package aimed at reducing expenditures by two billion euros, with a primary focus on limiting spending within hospitals. However, this plan was halted by the Bundesrat, which returned the legislation to the Mediation Committee for further discussion. As a result, the anticipated financial relief for health insurers has not materialized, and the expected cost reduction cannot be factored into insurers' budget planning for the coming year.

Official estimates had suggested that, had the cost-saving package been implemented, the average supplementary contribution would remain at approximately 2.9 percent for 2026. This figure typically serves as a reference point for insurers when setting their own rates. However, with the legislation on hold, insurers now anticipate the need for a higher average supplementary contribution as early as the start of the next year.

Financial Pressure on Insurers

The head of TK has indicated that several insurers may need to increase their supplementary contributions during the year, not just at the start. The situation is being exacerbated by the need for insurers to rebuild financial reserves that have been depleted in recent years in response to rising healthcare costs and pandemic-related expenditures. Without immediate and effective policy interventions, the upward trend in contribution rates is expected to persist, with further increases likely in the subsequent year.

Impact on Employees and Employers

Any increase in health insurance contributions affects both employees and employers equally, as they share the financial burden. The ongoing rise in healthcare spending, particularly on hospital treatments, pharmaceuticals, and medical innovations, continues to outpace the growth in premium income. This structural imbalance is prompting calls for comprehensive reform of the statutory health insurance system to ensure long-term financial sustainability without excessive cost increases for insured persons.

Outlook for the Coming Years

Even if a compromise is reached in the Mediation Committee regarding the government's cost-saving package, experts believe it may come too late to influence the calculation of supplementary contributions for the next year. The statutory health insurers are therefore preparing for a period of heightened financial pressure, with premium increases expected to continue unless effective reforms are enacted promptly.

Stakeholders in the healthcare sector are urging policymakers to prioritize sustainable solutions that address both rising costs and the need for adequate reserves. The current situation underscores the challenges facing Germany's statutory health insurance system and highlights the importance of timely, coordinated action from all involved parties.