Rising Health Premiums: Insurance Firms Boost Payment Requirements Once More

German health insurers are bracing for another round of contribution increases in August 2025, as they grapple with a persistent and growing financial deficit. The deficit is primarily driven by expenditures outpacing revenues, a situation exacerbated by factors such as high inflation, rising healthcare costs, demographic changes like an aging population, and the repeal of previous cost-containment regulations.

According to projections, the total deficit of statutory health insurers in Germany is expected to reach 6 billion euros in 2024. This structural imbalance has led to escalating deficits in health insurance funds, with the deficit surging from €1.9 billion in 2023 to €6.2 billion in 2024. Early 2025 data shows €4.5 billion in just the first quarter.

The consequences of these financial holes include increased contributions for policyholders. Under moderate scenarios, additional contributions may rise from about 2.5% to over 4% by 2029. The overall rise in social security contributions, including health insurance, reached a record 42.3% in 2025.

The Federal Court of Auditors and the Federal Ministry of Health have highlighted the urgency for corrective action, while criticizing government delays in reforms and cost control. Regarding potential savings through improved administrative efficiency, while the search results do not provide explicit quantitative estimates, the Federal Court of Auditors and policy analysts advocate for structural reforms and targeted expenditure reductions to stabilize finances.

One area for cost containment is the reduction of so-called “non-insurance benefits” imposed without additional funding. The repeated critique of government inaction suggests that significant savings could be achieved by addressing administrative inefficiencies and reforming expenditure frameworks, potentially offsetting the need for further contribution hikes.

Numerous German health insurers are planning to increase their contributions again in August. At the SBK, the contribution is increasing by 0.9 percentage points, resulting in a new rate of 18.4 percent. The BKK Firmus has the lowest contribution rate among statutory health insurers at 16.44 percent. The BKK Linde is increasing its individual additional contribution to 2.99 percent from August 1, 2025, resulting in a total contribution rate of 17.59 percent.

The financial holes in German health insurers are partially attributed to higher costs for medicines and remedies. A study by Deloitte suggests that statutory health insurers in Germany could save between 8 and 13 billion euros within two to four years by reducing unnecessary expenses in administration.

Unrest among German citizens is growing due to negative reports about massive financial holes in health insurers. A reform proposal by Friedrich Merz is causing a stir, aiming to address these concerns and stabilize the financial situation of the health insurers.

In summary, rising contributions are mainly due to fiscal deficits driven by increased health expenditure and inflation outpacing income. The potential savings from improved efficiency are not quantified but are considered crucial by oversight bodies to reduce upward pressure on contributions. The financial stability of German health insurers depends on structural reforms, including improving administrative efficiency and controlling expenditures.