Philippi Defends Care Reform Law and Cuts
Lower Saxony’s Health Minister Andreas Philippi has defended the newly passed Nursing Empowerment and Bureaucracy Reduction Act (BEEP). He called it a 'landmark legislative package' designed to support nursing staff and secure the future of Germany’s health system. The law also aims to stabilise the finances of statutory health insurance while preventing higher contribution rates for workers and employers.
The act includes a controversial measure: the temporary suspension of the most-favoured-nation clause for hospitals. This provision had drawn criticism, but a compromise was reached to restrict its suspension until 2026. Compensation for affected clinics will begin in 2027.
Dr. Hendrik Hoppenstedt, chairman of the Bundestag’s mediation committee, led the negotiations that finalised this agreement. Elected on December 17, 2025, alongside Manuela Schwesig, he helped shape the law’s financial framework. The changes are expected to save €1.8 billion, avoiding potential increases in insurance contributions. Philippi argued that policymakers had fulfilled their obligations to healthcare workers and patients. He also stressed that the law reflects a democratic balance between federal and state governments, as well as across political parties.
The Nursing Empowerment and Bureaucracy Reduction Act will now move forward with its revised provisions. The €1.8 billion in savings is set to ease financial pressure on both insured individuals and employers. Meanwhile, the 2026 deadline for the most-favoured-nation clause suspension marks a key milestone in the law’s implementation.
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