6 insurance companies will raise their prices soon
In a new development that raises concerns, six health insurance companies in Germany are preparing to increase their additional contributions starting from next July, which means additional financial burdens for the insured. This came after the Central Association of Health Insurance Funds (GKV-Spitzenverband) confirmed that these companies have already submitted requests to raise contributions, without disclosing their names.
This comes at a time when the financial deficit of the healthcare system for 2024 is estimated at around 6.2 billion euros. Although the overall income of insurance funds is rising due to wage increases and improvements in the labor market, expenses are growing faster, with an increase of 7.7%, compared to a wage increase of only 4.22%.
The head of the federation, Doris Pfeiffer, warned of the continuation of this "financial spiral," emphasizing the need for urgent action to stop the bleeding of spending, especially in the fields of treatment and medication. She confirmed that the recent increases in contributions have not led to a real surplus, but merely a temporary cover for losses. The annual report "GKV-Check-up 2025" issued by McKinsey warned that dozens of insurance funds, potentially numbering up to 60, are threatened with closure in the near future, stressing that the solution lies in digital transformation and adopting modern technologies to improve efficiency.
The Association of Alternative Health Insurance Companies (vdek) does not expect an improvement soon, but rather anticipates a continued rise in contributions until 2026, amid significant administrative problems within some major companies such as TK, DAK, and Barmer. In 2023 alone, administrative and salary costs amounted to approximately 12.6 billion euros, which is equivalent to 4.3% of total expenses.
Health Minister Nina Farken (CDU) recently confirmed that the government is working to avoid additional increases for insured individuals and companies by providing additional financial aid from the state budget exceeding the annual limit of 14.5 billion euros. For its part, the German Medical Association called for an urgent national dialogue to discuss the future of health financing, pointing out that raising contributions is not a permanent solution. It proposed imposing targeted taxes on products such as tobacco, alcohol, and sugar to directly fund the health sector budget.
In turn, the VdK social union expressed its deep concern about the deteriorating financial situation of health insurance. Its president, Verena Benteli, stated that the solution lies in controlling rising expenses, especially doctors' salaries and drug prices, and called for responsible measures from the parties that financially benefit from the health system. As for nursing insurance, the situation does not seem any better, as a deficit of 166 million euros is expected this year, following losses of 1.5 billion euros last year, despite increased contributions starting in 2025. Forecasts indicate that the deficit could reach 3.5 billion euros by 2026.
In this context, the VdK Association proposes to expand the base of participants in insurance by raising the income limits subject to insurance and allowing government employees to join the public system in all states. The Central Association of Health Insurance also demanded that the state cover the retirement expenses of relatives who provide care, as an urgent first step, in addition to compensating the funds for the huge expenses during the Corona crisis. The federal government has pledged to form committees to prepare structural reforms that ensure the long-term stability of health and nursing insurance systems.