Germany’s Health Insurance Funds Post First-Quarter Surplus of 1.8 Billion Euros, Minister Says More Needs to be Done to Stabilize the System
The 94 statutory health insurance funds in Germany reported a surplus of 1.8 billion euros for the first three months of the year, according to the Federal Ministry of Health. As of the end of the quarter, the health insurance funds’ financial reserves stood at around 3.6 billion euros, which is equivalent to only half of the minimum reserve of 0.2 months of expenses, as prescribed by law. The surpluses are primarily being used to build up the funds’ reserves to the required minimum level.
Federal Health Minister Nina Warken emphasized that the good numbers are misleading, as the surplus in the first quarter is solely being used to fill the low reserves and is not a sign of a relaxing financial situation in the health insurance system. Instead, the minister noted that the expenses have grown more strongly than the revenues in the first three months of 2025, which increases the pressure on the additional contributions for the next year and underlines the need for action. The minister announced that an expert commission will prepare proposals for a package of short-term measures and structural reforms to stabilize the health insurance system, with the aim of presenting the proposals earlier than foreseen in the coalition agreement. In parallel, the government will quickly start working on structural reforms to set the course for a long-term stabilization of the health insurance system.
In the first quarter, the health insurance funds’ revenues of 88.3 billion euros were matched by expenses of 86.5 billion euros. The expenses for services and administrative costs, despite a 0.1 percent increase in the number of insured individuals, rose by 7.8 percent. The average additional contribution rate, which stood at 2.92 percent at the end of March, is significantly above the 2.5 percent announced for 2025. The financial development varied among the different types of health insurance funds, with the Ersatzkassen, Ortskrankenkassen, Betriebskrankenkassen, Innungskrankenkassen and Knappschaft all reporting surpluses. The Landwirtschaftliche Krankenkasse, which does not participate in the risk structure adjustment, recorded a surplus of 5 million euros.