Health Premiums Face Surge Without New Cuts

Health Premiums Face Surge Without New Cuts

The looming parliamentary hearing on Health Minister Nina Warken’s austerity package has been preempted by a fresh demand from statutory health insurance funds (GKV) for further cost-cutting measures, placing increased pressure on pharmaceutical companies and medical practitioners. Oliver Blatt, Chairman of the GKV-Spitzenverband, warned that without additional savings, average supplemental contributions could exceed three percent next year, a burden for both insured individuals and employers already strained by the current economic climate.

Blatt, speaking to the “Neue Osnabrücker Zeitung”, characterized the existing “small austerity package” already facing significant opposition from hospital associations, as inadequate. He urged policymakers to implement a more ambitious, comprehensive savings plan by year-end to stabilize contribution rates. He insisted a broad consensus requiring contributions from all major stakeholders would be necessary.

Specifically, Blatt advocated for substantial savings contributions from both the pharmaceutical industry and self-employed physicians. He highlighted concerns surrounding payments for appointment scheduling services which have failed to demonstrably reduce waiting times, alongside instances of alleged “faulty dual financing”. Blatt estimates potential savings of approximately 400 million euros could be realized by addressing these issues.

Further amplifying the pressure on the pharmaceutical sector, Blatt proposed a statutory increase in manufacturer rebates as a “short-term solidarity measure” estimating a revenue stream exceeding one billion euros. He argued that the industry has significantly benefited from the contribution-funded system, particularly in the development of novel medications, necessitating greater cost control and curbing escalating drug prices.

Minister Warken’s two-billion-euro austerity package, already approved by the cabinet, is slated for parliamentary approval on Thursday. Hospitals are already expressing alarm, with warnings of potential insolvency waves stemming from the package’s dominant contribution of 1.8 billion euros.

Despite hospital protests, Blatt defended the burden placed on clinics. He questioned their complaints, stating that hospitals are set to receive an additional 500 million euros monthly next year. While no hospitals will experience a reduction in funding, the growth of their earnings will be moderated, notably through the removal of the “most benefit clause” which he claims has granted them unjustified additional revenue for years. The escalating tensions highlight a deeply fractured landscape within the German healthcare system and underscore the political challenges in balancing affordability and quality of care.