BERLIN / LONDON (IT BOLTWISE) – German Health Minister Warken is planning savings of two billion euros to keep health insurance premium rates stable. But rising costs could jeopardize these plans and make adjustments necessary. Experts warn against excessive optimism as the targeted savings may not be enough to address financial challenges.
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The German Health Minister Warken has announced ambitious plans to stabilize health insurance contribution rates. Savings of two billion euros are intended to relieve the financial burden on the health system. These measures primarily affect health insurance companies and clinics, which were not included in the planning. The draft therefore seems somewhat uncoordinated, as the innovation fund is to be halved and the health insurance companies’ administrative costs are to be capped.
A key goal of the minister is to keep the government’s promise to keep contribution rates stable. But rising personnel and drug costs could thwart these plans. Experts warn that the targeted savings of two billion euros may not be enough. The health insurance companies are also obliged to replenish their minimum reserves, which further increases the financial burden.
The minister’s calculations are based on an additional contribution of 2.9 percent, which could be difficult for some health insurance companies to comply with. If Warken has to adjust its plans again next year, the situation could repeat itself, as was the case this year. This represents a significant risk that the Minister is taking to ensure the financial stability of the health system.
The savings also affect subsidies for clinics, which are to be frozen for a year. This could jeopardize security of supply as clinics rely on these funds to maintain operations. Halving the innovation fund could also slow down the development of new medical technologies and procedures, which could have long-term negative effects on the quality of healthcare.
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