Health Insurers: Costs for Health and Long-Term Care Insurance 'Getting Out of Hand' - Germany's €10 billion health insurance crisis demands urgent reforms by 2027

Germany's statutory health and long-term care systems face rising financial pressure, according to warnings from the Association of Substitute Health Funds (vdek). Without urgent reforms, the group predicts a funding gap of over €10 billion in health insurance by 2027. Meanwhile, Health Minister Nina Warken has proposed changes to primary care in an effort to control spending and improve efficiency.

On Tuesday, Minister Warken met with industry leaders to discuss reforms, including a gatekeeper model for primary care. This system would require patients to see a general practitioner before visiting specialists, aiming to reduce unnecessary appointments and lower costs.

The vdek has backed the reform but stressed the need for further measures. It called for stricter spending controls, better alignment of costs with revenue growth, and improved healthcare management. The group also proposed three key tools: digital initial assessments, electronic referrals, and a centralised platform for booking appointments.

Financial projections highlight the urgency of the situation. Health insurance spending is set to hit a record €370 billion by 2026, while long-term care costs could reach €80 billion in the same period. To ease the burden, the vdek has demanded additional steps, such as cutting VAT on medications and ensuring cost-neutral financing for unemployed citizens.

The reforms aim to stabilise Germany's healthcare finances before the projected shortfall worsens. If implemented, the gatekeeper model and digital tools could streamline care and reduce unnecessary expenses. The government and insurers now face the challenge of balancing cost control with quality healthcare delivery.