The CEO of the health insurance company DAK-Gesundheit expects greater additional burdens for millions of employees. “We have to expect a premium increase of 0.5 percentage points for health insurance at the beginning of 2025 and 0.2 points for nursing care insurance,” Storm told publishing network Germany (RND).
There is a “stronger spending push” in both social security systems than previously expected.
DAK expects a billion dollar hole
At the end of the year there will be a deficit of up to 2.5 billion euros in health insurance. “It is a very conservative estimate,” added the director of the third largest health insurance company. Contrary to the promise of Health Minister Karl Lauterbach, nursing care insurance will also not be able to cope with premium income, but will end up in the red.
“Health insurance companies are on the brink,” Storm noted. In reality, governments always tried to keep contributions stable in an election year. But this time it will result in “considerable increases” in social security contributions.
The cashier warned Lauterbach not to burden the health insurance companies with additional costs in this situation. Specifically, he criticized the Minister's current plan to promote the creation of additional medical study places with compulsory health insurance funds of up to 660 million euros per year. It is indisputable that more study places are needed. But it is a task for society as a whole that must be financed with tax revenues, Storm said.
In 2023, the 96 statutory health insurance companies recorded a deficit of 1.9 billion euros. The financial reserves of the health insurance companies amounted to 8.4 billion euros at the end of December, i.e. approximately 0.3 months of expenses. The law requires a minimum reserve of 0.2 monthly expenses.
But that's not all: starting in 2024 it will be more expensive for half of those who have private insurance. This affects both policyholders and clients who still wish to take out private insurance.
Less net gross for employees
If the contributions to health insurance and nursing care insurance increase, employees will have less net income from their gross income. Prices are also rising. Carsten Brzeski, ING's chief economist for Germany, already warned this in an interview with the newspaper “Bild”. In addition to health insurance, contributions to pension insurance and unemployment insurance should also increase. Higher social security contributions make staff more expensive. On the contrary, this would also make many services and goods more expensive. Employers and employees share social security contributions for pensions, care, health insurance and unemployment benefits. “For the entire economy, this is once again confirmation that the coming years will be characterized by new price shocks.”
The president of Crafts, Jörg Dittrich, thinks the same. Because higher prices not only affect people's income, but “at the same time money has to be earned in companies”, so customers face “higher bills.”