The German Association of Statutory Health Insurance Funds (GKV) has issued a stark warning to Health Minister Nina Warken of the Christian Democratic Union (CDU), demanding immediate and substantial cost-cutting measures in the new year. Oliver Blatt, CEO of the GKV, cautioned that without “serious and far-reaching reforms” the average contribution rate, combined with supplementary payments, could reach an unsustainable 18% as early as 2027.
Blatt’s assertion paints a troubling picture of the current state of Germany’s healthcare system and underscores the limitations of existing, minor savings initiatives. He emphasized that the current level of austerity is inadequate and Minister Warken must swiftly introduce additional reforms to avoid “slipping deeper into the red”. The existing situation, he argued, is untenable for both contributors and the wider economy.
Further complicating matters, the GKV contradicted Minister Warken’s assurances of contribution stability. Blatt predicts a rise in the supplementary payment from the current 2.9% to at least 3.1%, pushing the overall contribution rate from 17.5% to 17.7%. This projected increase throws into question the government’s credibility and raises concerns about the affordability of healthcare for German citizens.
Central to Blatt’s demands is a critical examination and reform of the escalating costs of prescription drugs, particularly patented pharmaceuticals. He highlighted a concerning trend: these drugs now account for 54% of total pharmaceutical expenditure, despite representing only 7% of prescribed daily doses. Blatt urged political intervention, accusing the government of inaction and calling for immediate steps to curb this unsustainable growth.
Beyond merely stabilizing current rates, the GKV envisions a future where healthcare contributions are reduced. Blatt proposed a strategic goal of controlling expenditure growth – significantly reducing the current rate of approximately 8% to a more manageable 4% in response to a projected 5% rise in income. He stated that achieving this level of efficiency would create the fiscal space for potential contribution reductions, a prospect currently deemed unattainable under current spending patterns. The current trajectory, Blatt insisted, is financially unsustainable in the long term and requires bold, decisive action.