To stabilize the statutory health insurance funds, the federal government plans to reduce benefits for sick pay and dental prosthetics. According to a draft bill from the Federal Ministry of Health concerning the “Law to Stabilize the Contribution Rates of Statutory Health Insurance” the German newspaper “Rheinische Post” reported that a reduction of five percentage points in sick pay is deemed necessary and acceptable, given the relatively high levels of financial security provided by wage replacement and sickness benefits when compared internationally.
Furthermore, the supplementary contributions for dental prosthetics will be lowered to the level that was in effect up until 2020. Due to significant funding deficits, the government suggests that increasing the contribution rate for insured persons cannot be avoided.
The contribution assessment ceiling is slated for an increase. The draft proposes that in 2027, the monthly contribution ceiling will be temporarily raised by approximately 300 euros. This measure aims to enhance the fairness of contributions and generate a solidarity contribution from employers and individuals with higher incomes to support the reform package. Currently, this ceiling stands at 5,812.50 euros per month.
Additionally, the federal government intends to grant the insurance funds more time to repay loans. The federal government itself will contribute to stabilizing the contribution rates by rescheduling the repayment of loans totaling 5.6 billion euros-originally granted in 2023, 2025, and 2026-to the period between 2035 and 2039.
