Federal Council halts austerity package aimed at stabilizing health insurance contributions

(de-news.net) – The savings passage, which had been approved by both the Bundestag and the Federal Government with the intention of stabilizing the state’s health care system, has been temporarily suspended by the Bundesrat, which in turn has called upon the mediation committee to reconsider the matter. The legislative package, designed to generate savings of nearly two billion euros, was expected to help sustain the level of contributions in the upcoming year and thereby prevent sharp increases. A central element of the law focuses on reductions amounting to 1.8 billion euros in payments to health care providers, with the stipulation that from 2026 onwards the growth of hospital reimbursements should be strictly limited to the actual rise in costs. Critics, however, have expressed concern that such measures could lead to a gradual and long-term deterioration of the hospital system, thereby undermining the quality and stability of medical care.

Federal Minister of Health Nina Warken characterized the Bundesrat’s decision as problematic for the broader German economy. She has emphasized that safeguarding the competitiveness of the national economy requires the stabilization of social contributions as a fundamental objective. In her assessment, the financing of health systems cannot be consistently secured through the perpetual increase of contributions or through reliance on additional tax subsidies. She has further pointed out that the federal government has already provided substantial relief to hospitals in the form of multi-billion-euro support, while the federal states have not adequately fulfilled their own financial obligations in this regard.

The statutory health insurance funds also reacted with marked disapproval. Representatives of the TK statuary health insurance warned that the budgetary planning of the funds is now severely burdened by the delay and described the development as a troubling signal for both contributors and the wider economy. The president of the organization stressed that the savings package had always been too limited in scope to stabilize contributions effectively, and that any compromise reached in the mediation committee would likely come too late to be incorporated into the financial planning for 2026. The DAK shared this perspective, referring to the situation as a health-policy debacle, since the promise of stable contributions can no longer realistically be upheld under the current circumstances.

At present, the reform intended to stabilize the health care system stands in jeopardy. The Federal Government continues to insist upon the necessity of collective efforts between federal and state authorities in order to secure the long-term financial foundations of statutory health and medical insurance. The outcome of the mediation process will therefore be decisive in determining whether the envisioned stabilization of contributions can still be achieved or whether insured citizens must prepare for further financial burdens in the near future.

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