Economist Warns of Insurance Premium Hikes, Calls for Cost Cuts in Healthcare
A leading economist, Martin Werding, has urged the need for swift cost reductions in the healthcare and long-term care insurance sectors, in the face of looming premium increases.
Werding, a prominent figure in the field of economics, told the Rheinische Post that the long-term care sector should re-evaluate the recent expansions of services. “Do people in care grade 1 really need a monthly relief payment of €131? And who actually benefits from the 2024 introduction of reduced self-payment rates for stationary care?” he asked. Low-income individuals, who previously had to apply for social assistance to cover their care costs, would not benefit from the change, he noted.
Regarding the healthcare sector, Werding emphasized the need for a reform of the hospital structure to achieve cost savings. He also advocated for stronger economic incentives for service providers and insurance tariffs that encourage policyholders to contribute to these incentives.
The economist warned that premium increases could be a hindrance to the economy, stating that “strong increases can brake the expected upswing. In the long run, the increase must be definitively halted and the trend even reversed to secure growth and employment.