The German Social Ministry’s plan to increase health insurance contributions is expected to be alleviated by the federal government taking over non-insurance-related services using federal funds, according to the Union’s intention after the election. This was confirmed by North Rhine-Westphalia’s Social Minister, Karl-Josef Laumann, a CDU member, in an interview with the Frankfurter Allgemeine Zeitung.
“The federal government’s takeover of non-insurance-related services must be part of the financial planning for the next legislative period” Laumann said. “If we want to maintain the 40% social insurance ratio, this issue is non-negotiable” he added, also serving as the CDU’s deputy chairman.
Laumann, however, rejected the proposal to expand social contributions to capital gains, as suggested by the Greens’ top candidate, Robert Habeck. “Habeck’s proposal would unsettle young people who are saving for a private pension and now fear having to pay social contributions on their earnings” Laumann warned. “That’s why I say ‘stop’ here clearly.”
Laumann also criticized the outgoing federal government for failing to provide financial aid to health and care insurance funds, leaving them with a debt of nearly six billion euros from the Corona era. He also mentioned that the state’s contribution to health insurance, currently around 130 euros per month for recipients of social benefits, is too low.
The background is the expected further increase in social contributions for employees and employers. According to a recent analysis by the Berlin-based IGES Institute, the overall contribution rate, currently around 42% of the gross salary, is expected to rise to almost 46% by the end of the next legislative period without reforms, with a significant portion of the expected increases coming from health insurance contributions.