IW Calls for Performance Cuts in Germany’s Statutory Health Insurance to Avoid Premium Hikes in 2026
The German Economy Institute (IW) is urging performance cuts in the statutory health insurance for the elderly to avoid premium hikes in 2026. According to IW expert Maximilian Stockhausen, a short-term one-billion-euro saving in the health insurance could be achieved by abolishing or strictly linking the so-called performance surcharge for full-time care.
Currently, every individual in need of care, regardless of their income or wealth, benefits from the performance surcharge. Stockhausen suggests that at least the elderly with higher pensions or assets should no longer receive the performance surcharge, which would alleviate the burden on the health insurance.
The expert emphasized the need for a general discussion about the scope of services in the health insurance, stating that the current situation is no longer financially sustainable, particularly in light of the approaching retirement of the baby boomer generation, which will significantly increase the burden on the health insurance in about 15 years. The DAK health insurance company has already warned of a 0.3 percentage point increase in premiums for the elderly by 2026 at the latest.