Budget draft for 2025: Loans worth billions and rising contributions are looming!

Budget draft for 2025: Loans worth billions and rising contributions are looming!

On June 28, 2025, the Federal Cabinet approved the draft budget for the coming year, which was presented by Federal Finance Minister Lars Klingbeil (SPD). The aim of the draft is to address the financial challenges in the healthcare system, but the measures have met with considerable criticism. A central element is billion-dollar loans to stabilize social security. Loud Mercury Statutory health insurance companies will receive a loan of 2.3 billion euros for 2025 and 2026, while nursing care insurance will receive a loan of 0.5 billion euros in 2025 and 1.5 billion euros in the following year.

However, this financial aid is insufficient to close the expected financing gap of 47 billion euros in the healthcare system. The health budget for 2025 has been reduced to 16.4 billion euros, which represents a decrease compared to the previous year. At the same time, the average additional contribution in statutory health insurance (GKV) will rise to 2.5 percent, and the contribution rate in long-term care insurance was also raised to 3.6 percent at the beginning of 2025.

Financing gaps remain

The existing loans only cover a fraction of the financial deficits. The GKV already recorded a deficit in the health fund of 3.7 billion euros in 2024, and the health insurance companies' reserves were 2.1 billion euros at the end of the year - less than half of the required minimum reserve. Even with the new loans, a financing gap remains: a remaining gap of around four billion euros within the GKV is expected for 2026. At least a deficit of two billion euros is forecast for nursing care insurance star reported.

According to Health Minister Nina Warken (CDU), the current financial situation requires additional financing elements and long-term structural reforms. These reforms are to be developed by a commission of experts by spring 2027. However, the criticism of the previous measures is clear. Representatives of the umbrella association of statutory health insurance companies describe the loan financing as unsustainable and warn of the potential consequences for the solvency and stability of the funds.

Criticism and demands

The opposition is sharply criticizing the draft budget. In particular, there is criticism that defense spending is prioritized over social investments. The federal government's net borrowing is expected to increase to 81.8 billion euros, and a total of almost 847 billion euros is planned for borrowing over the next five years. These measures could further increase the pressure on social security systems.

The numerous voices of criticism also come from social policy associations, such as the social association VdK. President Verena Bentele expresses concerns that the government plans are inadequate and there is a risk of increasing contributions to statutory health insurance. Klingbeil, meanwhile, defends the loans as a short-term solution and points to the urgently needed reform commissions, whose insights should help stabilize the financial situation.