Health Insurance Auditor Calls for Fiscal Efficiency - Audit Court demands budget cuts in health insurance program
The Federal Audit Office has issued a stark warning about the deteriorating financial situation of statutory health insurance (SHI) in Germany. According to their report, the financial crisis in SHI is deepening, with expenditure increasing at the highest rate in 30 years last year.
The report highlights several factors contributing to the increase in expenditure. Technical progress and demographic development are identified as key drivers, as an aging population exacerbates the structural coverage gap, with increasing expenditure expected alongside decreasing income due to the retirement of insured persons.
Delays in implementing necessary measures are also criticized as a significant factor in the increase of expenditure in SHI, particularly in the current hospital reform. The abolition of cost-saving regulations is also cited as a contributor to the financial crisis.
The report suggests measures to stabilize the financial situation of SHI in the short term, covering all relevant areas of performance, particularly those with significant cost increases. However, specific details on the proposed solutions or measures are not available at this time.
The Green Party's budget expert, Paula Piechotta, has called on the federal government to tackle a cross-party reform due to the coalition's lack of strength and unity. She suggests a "great coming together" of democratic parties to present a jointly worked-out reform that will find a sustainable solution. Central elements of the hospital reform, aimed at increasing efficiency, shifting towards outpatient care, and improving quality, should not be neglected.
The report's findings were first reported by the news magazine "Politico", and the report obtained by the news agency AFP on Monday states that health insurance contributions could reach a level that could dampen economic growth.
As the financial crisis in SHI continues to deepen, it remains crucial for all parties involved to take decisive action to address the issue and ensure the long-term sustainability of the system. Typical proposals from such audits often include measures like cost control, improved efficiency, enhanced fraud prevention, better funding mechanisms, and legislative reforms. However, more specific and up-to-date details on the Federal Audit Office’s recommendations would require access to their latest reports or official press releases.
