During discussions surrounding the planned healthcare reforms and in lead-up to the German cabinet meeting on Wednesday, the German Social Welfare Association (SoVD) voiced strong criticism regarding the proposals put forth by Health Minister Nina Warken (CDU).
SoVD Chairwoman Michaela Engelmeier told the “Funke” newspaper group on Monday that while it is clear across the country that the costly but flawed healthcare system needs reform, substantial improvements are still lacking. She specifically targeted the failure to address the federal budget deficit, stating that the government must fulfill its obligation to finance the billions of euros provided to people relying on basic financial support from tax funds. Engelmeier emphasized that this is a systemic, societal task and cannot be borne solely by mandatory contributors to the statutory health insurance scheme.
Furthermore, the SoVD sharply objected to the proposed partial abolition of the fee-free co-insurance for spouses. According to Engelmeier, this provision is fundamental to the principle of solidarity, as it significantly relieves financial pressure on people earning lower to middle incomes. She pointed out that eliminating this coverage would disproportionately affect these families, concluding that the existing exception for children under seven is already merely a minor protective adjustment.
Engelmeier also deemed the planned reduction in sickness benefits completely incomprehensible and “socially dubious”. She criticized this measure as deeply unsolidaristic, arguing that cuts would be implemented for insured patients while private and civil service recipients continue to receive high sums. Consequently, the SoVD expects the federal government to act decisively during the cabinet meeting scheduled for Wednesday.
The association’s criticisms extended to the retirement planning advocated by Chancellor Friedrich Merz (CDU). Engelmeier urged the politician to stop undermining the statutory pension by speaking negatively about it, noting that such rhetoric causes anxiety among millions. She asserted that the statutory pension system is far superior to its reputation suggests, particularly when contrasted with the presentation offered by the insurance industry.
Regarding the structure of retirement funds, Engelmeier stressed that it is wholly indefensible for the Chancellor to pre-empt the work of the Age Security Commission. From the SoVD’s perspective, the nation cannot proceed with a mandatory insurance system that covers only the essentials while simultaneously relying more heavily on the volatile capital market for retirement security.
She reiterated that the statutory pension remains the most crucial, and sometimes the only, form of retirement provision for millions of people. Even if reforms are needed, she emphasized that the German system is currently solid, established, and reliable. To strengthen the statutory pension, she argued, two key areas must be focused on: the labor market, and raising the pension level to a projected 53%.
This criticism followed statements made by Merz, who at the Bankers’ Association’s anniversary reception had suggested that the statutory pension would eventually only provide basic coverage. Merz maintained his stance, but during the CDA congress in Marburg, he clarified that while the statutory pension remains a foundation, the discussion must expand beyond mere safety nets. He stressed that all three pillars-statutory, occupational, and private savings-must be considered and brought into a new relationship with one another.
