Germany’s Employers’ Association Rejects Proposal to Increase Health Insurance Contributions
The German Employers’ Association, the Bund der Deutschen Arbeitgeberverbände (BDA), has rejected a proposal to increase the contribution ceiling for health insurance due to the strained financial situation of Germany’s health insurance funds. According to the association’s chief executive, Steffen Kampeter, the real problem is not a lack of revenue, but rather the quality of the healthcare system, which is the most expensive in the European Union, but not the best.
Kampeter emphasized the need for a bold plan of reforms that would make the German healthcare system more sustainable, financially viable and patient-friendly. He criticized the idea of simply increasing the contribution ceiling, saying it would be equivalent to a significant tax hike on employees.
The proposal to increase the contribution ceiling was made by the SPD’s health expert, Christos Pantazis, who suggested that high-earners should pay more into the statutory health insurance system. Specifically, he proposed increasing the contribution ceiling by around €2,500 to the level of the pension insurance ceiling.
The contribution ceiling is the maximum monthly gross salary above which social insurance contributions are not paid. Currently, it stands at €5,512.50 per month. The Christian Democratic Union’s faction has already rejected the proposal for higher health insurance contributions for high-earners.
Kampeter argued that the burden on employees is already high, with a relatively low share of the income remaining after taxes and social insurance contributions. He called for a consolidation of the healthcare landscape, a focus on basic care and an increase in the self-responsibility of insured individuals, rather than simply increasing the cost of work.