People covered by statutory health insurance in Germany will face significantly higher premiums next year, after the Federal Health Ministry announced that the additional contribution (Zusatzbeitrag) rate will increase by 0,3 percentage points. 

Public health insurance contribution rate to rise to 1,6 percent

Federal Health Minister Karl Lauterbach announced on Tuesday that health insurance companies will be allowed to increase their additional contribution rates by 0,3 percentage points from January 1, 2023 - to a maximum of 1,6 percent - to help plug a financial deficit that most recently widened during the coronavirus pandemic. 

This, together with the standard contribution rate of 14,6 percent, brings the total health insurance contribution under the public system to 16,2 percent of a person’s gross salary. For people working in Germany, half of this amount is paid by the employer. 

Statutory health insurance in Germany facing funding crisis

Lauterbach said that the change would give health insurance companies an additional 4,8 to 5 billion euros, at a time when they are facing a financial deficit of around 17 billion euros. The federal subsidy from the government will also be increased by 2 billion euros, and a further 1 billion euros will be loaned to the funds. 

The health minister piled the blame for the increase on his predecessor, Jens Spahn of the Christian Democratic Union, who served under Angela Merkel. Lauterbach told reporters, “The federal government found the finances of the statutory health insurance companies in a very bad state. I essentially inherited this deficit from my predecessor.” He accused Spahn of expanding expensive services and eschewing structural reforms. 

Lauterbach’s decision needs to get the approval of the government, but this appears to largely be a formality, since the proposal has already received the support of Federal Finance Minister Christian Lindner. 

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