Health insurance companies on the brink of collapse: a 47 billion euro deficit threatens!

Health insurance companies on the brink of collapse: a 47 billion euro deficit threatens!

The financial situation of statutory health insurance companies in Germany is currently alarming. Health economist Jonas Schreyögg warns of a huge deficit as the government considers measures to stabilize its coffers. Employers and employees pay on average 17.5% of their gross salary for statutory health insurance. This year, a record deficit of 47 billion euros is forecast, which corresponds to 2.5 percentage points of the contribution rate. These figures suggest that health insurance companies' income and expenditure have long been out of sync.

Health Minister Nina Warken describes the situation as “worrying” and has already announced that she will support the health fund with 800 million euros. This decision is necessary because the fund's reserves have fallen below a legally stipulated value. The total expenditure of statutory health insurance currently amounts to 311 billion euros annually. Warken calls for quick action to ensure the financial stability of health insurance companies.

Structural reforms required

Schreyögg does not see the main problem as revenue, but rather calls for comprehensive structural reforms to control costs in the health sector. The proposals include an increase in the contribution assessment limit of 5,500 euros and the introduction of a global budget in the hospital sector. In addition, a general discount or price freeze on medicines is proposed in order to contain costs.

Another aspect is the reform of emergency care, which could generate annual savings of up to five billion euros. According to Schreyögg, measures to strengthen outpatient care and the primary doctor principle have already resulted in hospital admissions falling by 9%.

Political measures in focus

The new coalition between the Union and the SPD is planning measures to prevent further increases in contributions. The coalition agreement agrees to set up a commission to examine health policy projects and make suggestions. Health Minister Warken has already discussed an emergency package with additional tax funds for health insurance companies.

Federal Finance Minister Lars Klingbeil emphasizes the urgency of fundamental structural reforms in social insurance. He plans to present his draft federal budget on June 25, 2025, which will include funds for social insurance, including health insurance. However, it remains unclear how many billions will actually be made available by the federal government to support health and nursing care insurance.

DAK CEO Andreas Storm also calls for immediate action and a repayment of the Corona aid amounting to around 6 billion euros. The financial challenges have been exacerbated by the structural differences between the income and expenditure of statutory health insurance companies. A further increase in contributions could ultimately increase non-wage labor costs and put additional strain on the economy.

Against this background, the situation remains tense and the coming months will be decisive in determining whether the federal government's measures are sufficient to keep health insurance companies stable and to continue to guarantee health care in Germany.

Experts assume that without fundamental reforms, deficits will continue to rise in the coming years. Schreyögg and other experts therefore express the urgency of quick action in order not to further endanger the economic foundations of statutory health insurance.

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