Employers are demanding radical savings in health insurance!

Employers are demanding radical savings in health insurance!

The discussion about the financial structure of statutory health insurance (GKV) is gaining momentum in Germany. In a current one Position paper The Confederation of German Employers' Associations (BDA) are proposing radical savings in order to reduce contributions and additional wage costs and to significantly reduce health insurance expenses.

The goal is ambitious, with the prospect of savings of up to 50 billion euros annually. This is to be achieved primarily through measures such as the end of the exemption from contributions for co-insured spouses with little or no income and the introduction of a minimum contribution of around 220 euros per month. This change would probably bring the GKV additional income of 2.8 billion euros per year.

Planned changes

The suggestions are far-reaching. A return to a “contact fee” of 10 euros per doctor visit could help avoid unnecessary visits and regenerate savings of up to 3 billion euros annually. Furthermore, the aim is to reduce the VAT on medicines and medical aids to 7%, which would free up an additional 5.3 billion euros annually.

Another innovative concept is the introduction of a “patient receipt”, which integrates a clear overview of the use of healthcare services and their costs into the electronic patient file. But that's not all; there are two scenarios for the targeted savings. In the optimistic plan, savings of over 50 billion euros are possible, whereas the realistic scenario expects less ambitious savings of 30 to 40 billion euros, which, however, already implies a reduction in statutory health insurance spending by 10%.

Reducing costs: impact on contributions

With these measures, the contribution rate could be reduced from the current average of 17.5% to between 15.5 and 16%. This brings both employees and employers monthly savings of 41 to 55 euros in the realistic scenario or even up to 69 euros in the optimistic one. These changes are important not only for the health insurance companies, but also for all insured persons.

At this point it makes sense to shed light on some of the general conditions in social insurance. For example, the general annual salary limit for 2025 is 73,800 euros and the special limit is 66,150 euros, which is particularly important for the self-employed and low-income earners. Low-income earners with an income of less than 325 euros per month fall under special health insurance regulations, while a free accommodation value of 282 euros per month has been set for free or discounted use of living space.

Overall, it is clear that the operators of the GKV are facing major challenges. It is important to improve the financial conditions for all insured persons, while at the same time the quality of health care must not be allowed to fall by the wayside. The way forward will have to show whether these radical savings are actually possible or whether other ways need to be found to secure health in the country.