Health insurance companies and nursing care insurance: there is a risk of dramatic premium increases!

Health insurance companies and nursing care insurance: there is a risk of dramatic premium increases!

The financial framework for statutory health and nursing care insurance in Germany is facing a serious crisis. How Capital reported, those with statutory health insurance are threatened with drastic premium increases as early as 2025. In particular, the tense situation of health insurance companies due to demographic change is forcing additional contributions to be increased.

Current figures show that of 58 national health insurance companies, 45 can cover less than 20% of their monthly expenses from financial assets. It is also worrying that 22 health insurance companies already have no reserves. In this context, six health insurance companies have already increased their additional contribution rates, and many further adjustments are on the horizon. The average additional contribution is currently 2.5% in addition to the statutory contribution rate of 14.6%.

Deficits in nursing care insurance

The situation in nursing care insurance is no less critical. Loud DAK A deficit of 1.65 billion euros is expected by the end of 2025, which could increase to 3.5 billion euros in 2026. An increase in nursing care insurance contributions of at least 0.3 contribution rate points may be necessary. Last year, nursing care insurance was already in the red with a deficit of 1.54 billion euros, which meant that nursing care contributions were increased by 0.2 percentage points.

A current survey as part of the DAK care report reveals that almost 80% of Germans see a need for reform in geriatric care. In this context, Health Minister Nina Warken has announced the establishment of a federal-state working group to reform long-term care insurance. She is also demanding compensation from the federal government for the high expenses incurred during the corona pandemic. Her predecessor, Karl Lauterbach, had also initiated a reform in this area, but it has not yet been implemented.

Future challenges

In addition to the immediate financial challenges, latent increases in healthcare costs must be considered. The IGES Institute has projected on behalf of the DAK that the contribution burden for income subject to social insurance contributions will rise to 42.5% by the beginning of 2025, which represents an increase of 1.5 percentage points compared to 2024. The overall social security contribution rate is therefore moving further away from the previous cap of 40%.

The “baby boomer” generation in particular is bringing with it additional burdens as a result of demographic change, which will lead to further increases in contribution rates. According to a three-part scenario study that extends to 2035, significant increases are to be expected in all branches of social insurance, especially in health and nursing care insurance. In the pessimistic scenario, the contribution rate could rise to almost 49% by 2035.

DAK-Gesundheit is planning various measures to stabilize contribution rates in the statutory health insurance, including waiving certain financing measures and increasing tax financing. If everything is implemented as planned, the GKV contribution rate could be limited to 17.5% from 2026, which would result in a reduction in the overall social insurance contribution rate by 2.5 percentage points by 2035.

The financial situation of health insurance companies and nursing care insurance is therefore in jeopardy. The coming months will be crucial in preventing a cost explosion and the associated burdens on those insured.