German Health Reform in Limbo as 50% Co-Pay Hike Looms for 2027
23.06.2026 - 09:15:03 | boerse-global.de
A planned overhaul of Germany's statutory health insurance system hit a procedural snag when the Bundestag postponed a decisive vote from June 22 to July 10, following a contentious expert hearing. Insurers now warn that a massive financing gap threatens the system as early as 2027.
The Federal Health Ministry pegs the current deficit at more than €19 billion. In the first quarter of 2026, revenues grew by 4.1 percent while spending jumped 7.6 percent. The National Association of Statutory Health Insurance Funds projects a shortfall of €18 billion for 2027 alone. GKV-Chef Blatt called for a much more aggressive savings package, criticizing the government's plan to cut the federal subsidy by €2 billion annually. "For 2027 alone, an additional €2.5 billion is needed just to prevent further premium increases," Blatt said. More than 90 associations voiced concerns during the hearing.
The reform, championed by Health Minister Warken, would impose steep new costs on patients starting January 1, 2027. Co-payments for prescription drugs would rise 50 percent, from the current €5 to €10 band to €7.50 to €15. Dental prosthetics subsidies would also shrink: without a complete bonus booklet, the fixed subsidy drops from 60 to 50 percent; with a booklet, patients would receive 65 percent instead of 75 percent. A hardship rule remains in place: co-payments cannot exceed two percent of gross income, or one percent for those with chronic conditions.
A flashpoint is the potential increase in the contribution assessment ceiling to €6,750 per month. TK-Chef Jens Baas warned that up to 250,000 high earners could switch to private insurance in 2027, stripping the public system of €3 billion. For workers and employers below the ceiling, he estimates additional monthly costs of roughly €80 each. The pharmaceutical association vfa criticized planned manufacturer rebates, while the Bundesrat has already registered objections to a blanket three-percent discount on medical aids. Doctors' groups such as the KBV predict shrinking service offerings and longer waiting times.
The political timeline remains shaky. The cabinet approved the draft on April 29, but the delayed Bundestag vote could push back consideration in the Bundesrat. If the chamber does not also meet on July 10, the next regular session would not occur until September 25. Public acceptance is weak: a YouGov poll found 61 percent of Germans oppose the plans. Trade union ver.di staged nationwide protests in mid-June. While the government insists it wants to align spending more closely with medical benefit, insurers and opposition parties demand sustainable stabilization beyond short-term cuts.
