Danger! Health insurance contributions will rise noticeably in 2025 – what does that mean for you?

Danger! Health insurance contributions will rise noticeably in 2025 – what does that mean for you?

The rising costs of the German healthcare system have once again come into focus as autumn approaches. It is the time of year when many people with statutory health insurance are looking forward to increasing health insurance contributions. According to current analyses, this increase could be significant in 2025.

Experts from the Estimator Circle, a group made up of experts from the Federal Ministry of Health and the Federal Office for Social Security, have found that the contribution rate for those with statutory health insurance could possibly increase by 0.8 percentage points. This means that the new contribution rate could be 2.5 percent of the income subject to contributions, as the BAS from Bonn announced. However, this number is theoretical and remains to be determined by the individual health insurance companies.

Background to the contribution increases

Especially in a year with federal elections, like 2025, the pressure on health insurance companies and their financing will be particularly noticeable. At the moment, the fixed contribution rate is 14.6 percent, half of which is borne by employees and half by employers. In addition, 95 statutory health insurance companies have a varying additional contribution, the values ​​of which currently fluctuate between 0.7 and 3.28 percent. The average additional contribution is currently 1.78 percent, as reported by the Ministry of Health.

In other words, a theoretical increase of 0.8 percent could mean a net burden of around 12 euros less for people with a gross income of 3,000 euros per month. The employer would also be affected by 12 euros. The exact contribution rates for the coming year are set by the health insurance companies themselves, so no precise statements can be made about the future monthly costs for the individual.

Financial challenges for the coffers

The current financial difficulties within health insurance companies are also alarming. In the first half of the year, spending rose by 7.3 percent compared to the previous year, with a total of around 161.3 billion euros. These expenses are mainly due to the costs of hospital treatment, which increased by 3.6 billion euros in the first six months. Spending on medicines also increased by 10 percent over the same period. These developments are influenced by increasing case numbers and high nursing staff costs.

With a deficit that could reach up to 4.5 billion euros for the year as a whole, the health insurance companies have been warning of an impending financial gap since September. The National Association of Statutory Health Insurance Funds has pointed out that the additional contribution for the current year should be at least 2 percent, instead of the estimated 1.7 percent. For 2025, this value could even increase to 2.3 percent.

Federal Health Minister Karl Lauterbach commented on the rising contributions and described the German health system as the most expensive in Europe. A large part of the cost increases is attributed to inefficient handling in many areas. Lauterbach also emphasized the need for hospital reform that aims to reorganize the financing of clinics. This reform is to be passed in the Bundestag on October 17th.

Current developments in the healthcare system clearly show that adjustments are necessary to stabilize the financial situation of health insurance companies in the long term. Fund contributions are expected to rise at the same time as plans to cut income taxes are being discussed. For next year, the basic allowance, which is not taxed, could be increased, which would mean noticeable relief for some households. However, negotiations on this are still ongoing.