Next year, German citizens might be facing an increase in their mandatory health insurance contributions. According to the Minister of Health, Karl Lauterbach (SPD), additional contributions to health insurance will rise by 0.1%, pushing the total to a record-breaking 1.7%. Currently, the contribution rate stands at 14.6%, and additional contributions can reach 1.6%.
While not all health insurance companies choose the maximum additional contribution, some might, resulting in higher expenses for some citizens. For employed individuals, the increase would mean an additional 0.05% of their income towards health insurance (5 cents per 100 euros), with the remaining 0.05% covered by employers. Freelancers, paying both employer and employee contributions, will see an additional 10 cents per 100 euros increase.
The financial deficit in Germany's healthcare system prompted this increase. After the COVID-19 pandemic, a historic deficit of 17 billion euros emerged within the mandatory insurance funds (GKV), with health insurance funds also facing a shortage of 4.5 billion euros.
Criticism for this rate hike surfaced from Steffen Kampeter, the General Director of the Confederation of German Employers' Associations. He raised concerns about the impact of rising contributions on the overall work environment and trust in social security systems.
However, it is worth considering that not all insurers will opt for the maximum additional income. For example, Techniker Krankenkasse charges 1.2%, while Barmer charges 1.5%.
Enrichment insights:
- Contribution Assessment Ceiling: The contribution assessment ceiling for statutory health insurance will increase to EUR 66,150 annually or EUR 5,512.50 per month, up from EUR 62,100 annually or EUR 5,175 monthly in 2024[1].
- Impact on Premiums: Private health insurance costs have increased by 3.2% per annum over the last ten years, and these abrupt increases are due to German laws regarding premium adjustments[2].
- Trust in Social Security Systems: The continuous increase in health insurance contributions and premiums might erode trust in the social security system among German citizens. Higher contributions and premiums can be burdensome, especially for those with lower incomes.
- Public vs. Private Insurance: Private health insurance might be perceived as more reliable due to its better preparedness for the future, with provisions like the 335 billion euros for aging populations[2]. However, private insurance costs increase abruptly due to the need to cover rising medical costs, which might not align with public expectations of stable and predictable premium increases[2].
