Health insurance companies in crisis: Young generation has to pay 904,000 euros!

Health insurance companies in crisis: Young generation has to pay 904,000 euros!

The financial situation of statutory health insurance (GKV) in Germany is becoming noticeably worse. According to an analysis by in Franconia The social security contribution rate is set to rise dramatically: by 2035 it is expected to rise to 47.5% and even reach 52.9% by 2050. This reflects the burden on young adults, especially those born in 2020, who are estimated to have to pay around 904,000 euros in social security contributions, while those born in 1960 will only pay 640,000 euros.

The constantly rising contribution rates not only endanger Germany's international competitiveness, but could also permanently undermine the acceptance of the pay-as-you-go social security system. PKV association director Florian Reuther urges caution and warns that without extensive reforms, the costs for the young generation could rise immeasurably. He offers to contribute his experiences to improve self-care.

Costs and subsidies at a glance

The state of the statutory health insurance is further complicated by record-breaking additional contributions, which now average 2.5 percentage points. The analysis by McKinsey consultants shows that over 100 health insurance companies increased their contributions in 2024, resulting in 126 premium increases. Particular outliers charge additional contributions of up to 4 percent.

This alarming development is not only reinforced by the pressure from health insurance companies, which have to charge an income-related additional contribution if there are insufficient allocations from the health fund, but also by low government subsidies. The current federal subsidy of 14.5 billion euros has been granted annually since 2017. However, this amount is insufficient compared to the financial needs of the statutory health insurance system. Supplementary subsidies in recent years amounted to just 3.5 billion euros in 2020, 5 billion euros in 2021 and 14 billion euros in 2022. A subsidy of 14.5 billion euros is expected again for 2024.

Contribution and income distribution

One percentage point contribution corresponds to a financial volume of around 17.1 billion euros. The general GKV contribution rate is 14.6 percent of income subject to contributions, half of which is borne by both employees and employers. This income is made up of different types of income. This includes wages, pensions from statutory pension insurance, as well as pension payments and income from self-employment.

Despite these burdens, voluntary members have to pay additional contributions from other sources of income such as capital assets or renting and leasing. The contribution assessment limit for 2024 is also 62,100 euros annually or 5,175 euros per month. Health scientist Heinz Rothgang has called for comprehensive reforms of the system in order to effectively address these challenges.

The current situation suggests that it is difficult to maintain a sustainable and fair healthcare system in this country without drastic changes. The future remains open, and young people are faced with the task of preparing for an increasingly uncertain financial reality.