German health Insurance Faces Billion-euro Deficits, Contribution Increases Loom
Germany‘s statutory health insurance system is facing a severe financial strain, with daily expenditures now reaching approximately one billion euros and rapidly increasing, according to Green health politician Janosch Dahmen.He warned, “Statutory health insurance now spends around 1 billion euros every day – the trend is rising rapidly.”
Hospital costs, the largest single expense for statutory health insurers, rose by nearly 10 percent in the first half of 2025 compared to the same period last year. Oliver Blatt, CEO of the top association of health insurers (GKV), emphasized the unsustainability of this trend, stating, “Such increase rates do not last for a health system in the world in the long run.” Billion-euro deficits are projected for 2026.
The GKV is calling for an immediate expenditure moratorium, meaning cost increases would only be permitted if accompanied by a corresponding rise in income. This would impact salary growth for medical specialists. Blatt stated that swift political action is necessary to prevent health insurance contributions from rising next year. Without intervention, additional contributions could surpass the 3 percent threshold, impacting both employees and employers.
Currently, statutory health insurance contributions stand at 14.6 percent of gross earnings, but this is not sufficient to cover costs. Additional contributions, which supplement the standard rate, averaged 2.5 percent in January 2025. As then,20 out of 94 health insurance companies have already implemented further increases mid-year. Forecasts for contributions from January 2026 are expected in mid-October.
Nina Warken also stressed the need to avoid further contribution increases. While loans are planned to compensate for deficits in 2025 and 2026, the GKV considers these insufficient and believes they will exacerbate future financial pressures.
Janosch Dahmen described the situation as a “health policy yo-yo effect,” criticizing the shelving of reform concepts, such as streamlining the emergency and rescue service, which he believes could provide immediate relief to staff and save billions. He warned that inaction from the minister will likely result in rising contributions for millions of insured individuals and companies starting in January 2026.
