(de-news.net) In order to stabilize the nation’s social insurance systems, the Federal Government intends to provide significant financial assistance in the form of aid packages worth billions of euros in 2025. A multi-year loan of 2.3 billion euros is to be given to the Health Fund, and 0.5 billion euros will be given to the long-term care insurance system’s compensation fund.

These actions are being taken in the face of severe financial deficits: statutory health insurance (GKV) had a 3.7-billion-euro shortfall in 2024, even though its reserves were only 2.1 billion euros, which is less than half of the legally required minimum reserve. Likewise, the social long-term care insurance had a 1.54-billion-euro deficit at the end of the fiscal year. As a result, the long-term care insurance contribution rate has already been raised to 3.6 percent, while the statutory health insurance supplementary contribution rate will increase to 2.5 percent in 2025.

Meanwhile, the CDU has rejected proposals from the SPD to require higher contributions from high-income earners, arguing that they do not align with the current coalition agreement. Furthermore, the CDU’s Economic Council has cautioned against the potential rise in labor costs brought on by such actions. Given the worsening financial circumstances, SPD Secretary-General Klüssendorf has pushed, on his part, for larger contributions from high earners. The current contribution assessment ceiling in statutory health insurance, which is set at 5,510 euros per month and beyond which no additional contributions are assessed, is relevant, he emphasized. At 8,050 euros, this ceiling is much higher in the pension insurance plan.