Funding Injection Pledged for Struggling Health and Long-Term Care Insursances
Klingbeil pledges injection of funds into health insurance tax revenues.
In a bid to stabilize Germany's ailing health and long-term care insurance systems, Finance Minister Lars Klingbeil has promised an injection of federal funds. However, he made it clear that these problems can't be permanently fixed with more and more tax money. The exact amount of funding remains undisclosed.
Following a distress call from the new Health Minister, Klingbeil has announced bold structural reforms for the social security systems. But initially, the cash-strapped health and long-term care insurance will receive support from the federal budget to help them stabilize. "We understand there's a difficult situation in health and long-term care insurance, and we need to address it," SPD leader Klingbeil told the German Press Agency (dpa).
Over in politics, the Vice-Chancellor mentioned the coalition agreement, which stipulates that Black-Red will work with experts to develop fundamental and audacious structural reforms. Previously, Federal Health Minister Nina Warken had demanded billions for both insurance systems to improve their financial situation and prevent further increases in contribution rates. Both insurance branches are in the red.
Warken reminded the federal government of the multi-billion-dollar deficits that they're responsible for, which stemmed in part from uncovered contributions for citizens' allowance recipients and insurance-foreign services from the corona period. She put the shortfall for citizens' allowance recipients at ten billion euros and the federal corona debts at almost six billion euros. Klingbeil didn't directly address her arguments and also didn't reveal the promised federal subsidy to dpa.
Meanwhile, Klingbeil defended the proposal by the social democratic labor minister, Barbara Bas, to include civil servants in the statutory pension insurance. He admitted that it's a crucial debate and that openness is needed. The Chancellery had already rejected Bas's proposal, stating it was not in the coalition agreement.
- Lars Klingbeil
- Health insurance companies
- Statutory health insurance
- Long-term care insurance
- Nina Warken
While the exact funding amount hasn't been disclosed, it's worth noting that discussions surrounding public health insurance in Germany revolve around a general contribution and an additional contribution set by each insurer, with the general contribution currently set at 14.6% of gross salary[4].
Moreover, EU budget plans might indirectly affect Germany's decisions on health funding due to challenges in allocating funds for health initiatives in future EU budget plans[3]. But for now, the focus remains on the promised federal budget support for health and long-term care insurance in Germany and the "fundamental and bold" structural reforms aimed at bolstering the country's social security systems.
- The promised federal funding for health and long-term care insurance in Germany is intended to stabilize the struggling systems, as announced by Finance Minister Lars Klingbeil.
- The structural reforms for the social security systems, as announced by Klinger, aim to address the difficulties faced by health insurance companies, including statutory health insurance and long-term care insurance.
- In politics, the focus remains on the promised federal budget support for health and long-term care insurance, as well as the fundamental and bold structural reforms aimed at bolstering the country's social security systems. This includes discussions surrounding public health insurance in Germany, which revolve around a general contribution and an additional contribution set by each insurer.
