VdK Takes Legal Action Against Transformation Fund

The VdK social association has initiated legal proceedings against the German government's Transformation Fund, which is set to finance a significant reform in the hospital sector. The fund, amounting to EUR50 billion, has sparked controversy due to its funding structure, which involves contributions from both federal states and the statutory health insurance system (GKV).

Last year, the debate surrounding the hospital reform intensified, putting the future of the project at risk. Health Minister Karl Lauterbach's initiative faced substantial opposition, leading to fears that it might not pass in the Bundesrat. However, in November, the Bundesrat approved the Hospital Supply Improvement Act, allowing the reform to take effect at the beginning of the year.

Despite this development, tensions remain high. Critics of the funding model argue that it places an undue financial burden on those insured under the statutory health insurance system, while private health insurers are not contributing to the costs of the reform.

The VdK has publicly stated its position, claiming that the use of GKV contributions to support the hospital reform is unconstitutional. The association asserts that the financing model unfairly impacts insured individuals, particularly as the reform is expected to lead to an increase in supplementary health insurance contributions.

According to the VdK, the Transformation Fund is projected to impose an additional EUR2.5 billion charge on the GKV annually. This increase in financial obligation may result in rising contributions for insured individuals. The VdK emphasizes that many people are already feeling the effects of these increases, with further hikes likely in the coming months.

Verena Bentele, the president of VdK, has highlighted the constitutional protections surrounding social insurance contributions, which are meant to be strictly allocated for purposes that directly benefit GKV members. She argues that funding for the hospital reform should not draw from these contributions, as the benefits extend beyond just the insured, impacting private insured individuals and others within the healthcare system.

Bentele insists that it is only fair for the entire society to shoulder the costs associated with improvements to the healthcare system. She advocates for the reform to be financed through the general state budget rather than through health insurance contributions, which should be reserved for services directly benefiting the insured population.

In addition to the ongoing legal action, the VdK has called for a fundamental change in the health insurance system, proposing a unified citizen insurance scheme as a viable alternative to the current model. The association argues that this reform is necessary to ensure equitable healthcare financing for all citizens.

Concerns about rising health insurance contributions are being echoed across the sector. Recent forecasts indicate that social security contributions could reach record levels if no intervention occurs from policymakers. This situation has prompted various stakeholders to urge immediate action to stabilize contributions for health insurance.

As the legal proceedings unfold, the implications for the hospital reform and the broader healthcare funding landscape in Germany remain to be seen.