A new report suggests that the loan promised by the German Federal Minister of Finance, Lars Klingbeil, may not prevent further increases in health and long-term care insurance premiums, but rather only slow them down.
According to a prognosis by the IGES-Institut, commissioned by the German health insurance provider DAK, the contribution rate in the statutory health insurance system is expected to rise from its current 17.5 percent to 17.7 percent in the coming year and then to a record high of 18 percent in 2027.
Similarly, the prognosis foresees a significant increase in the contribution rate for long-term care insurance, from 3.8 percent in 2026 to 4.2 percent in 2027.
DAK’s CEO, Andreas Storm, has criticized the planned loan, stating that it will not stop the “contribution spiral” for insured individuals and employers. Storm warned that the loan, which comes with a repayment obligation, will only create a “jojo effect” and a “price war” in the health and long-term care insurance sectors, leading to unbridled increases in contribution rates and putting the functionality of the German social insurance system at risk.