Germany to Close Partial-Pension Loophole as Health Insurance Costs Mount
15.06.2026 - 11:48:28 | boerse-global.de
Thousands of working pensioners in Germany could soon lose their entitlement to sick pay under a government plan to close a widely exploited loophole. From 2027, anyone drawing a partial pension equal to two-thirds or more of their full retirement benefit will no longer be eligible for wage-replacement payments from statutory health insurance.
The measure is part of the draft GKV-Beitragssatzstabilisierungsgesetz (Statutory Health Insurance Contribution Rate Stabilisation Act), which the cabinet advanced in mid-June. Lawmakers are targeting the so-called 99.99-per-cent model, a trick that lets employed retirees formally waive a tiny fraction of their pension to qualify as "partial retirees" and keep full insurance cover, including sick pay.
By introducing a clear two-thirds threshold, the reform aims to eliminate what officials describe as "system-incompatible windfall effects." The annual savings to the statutory health insurance (GKV) are estimated at 30 to 36 million euros.
The change fits into a broader package designed to plug a projected financing gap of roughly 15.3 billion euros in the GKV for 2027. Overall, the measures are expected to relieve the health funds by about 16 billion euros that same year. The scale of the issue is underlined by labour-market data: at the end of 2022, around 1.3 million pensioners were still in work, including roughly 245,000 people who had already started drawing a pension before the standard retirement age.
Beyond the sick-pay restriction, several other adjustments come into force from 2027. The contribution assessment ceiling (BBG) will rise to an estimated 76,350 euros a year, while the annual earnings threshold for switching to private health insurance (PKV) is being lifted to 84,800 euros.
Starting in 2028, spouses who wish to remain in cost-free family insurance will have to pay an additional contribution of 2.5 per cent. Reimbursement for homeopathic treatments is scrapped from 2027, and subsidies for dental prostheses are cut by ten percentage points. At the same time, patients' co-payments for prescription medicines rise to a range of 7.50 to 15.00 euros.
A separate provision affects recipients of Bürgergeld (the basic income support for jobseekers). As of 31 December 2026, protection against forced early retirement expires. From January 2027, job centres can compel claimants who have at least 35 years of pension contributions to take an early old-age pension. The consequence can be a permanent pension cut of up to 14.4 per cent. Exceptions apply only if the person would soon qualify for a deduction-free pension or if the reduction would push them into means-tested basic security.
