Starting January 2025, millions of Germans will feel the squeeze as health insurance premiums, particularly the extra contribution rates, are set to rise significantly. This change marks one of the most substantial increases in recent years and affects nearly all statutory health insurers across the nation.
The Techniker Krankenkasse (TK), Germany's largest health insurer with around 11.8 million members, recently announced their extra contribution would rise from 1.2% to 2.45%. This increase pushed the total contribution rate for TK to 17.05%, combining the general rate of 14.6% with the new extra charge. "The strong rise in expenses, particularly in the areas of hospitals and medications, impacts all statutory health insurers," explained Dieter Märtens, Chairman of TK's Administrative Board, as reported by MDR.
Other major insurers are following suit. For example, Barmer, the second-largest insurer with 8.5 million members, will hike its extra contribution from 2.19% to 3.29%. Meanwhile, Knappschaft, Germany's oldest insurer, will implement the steepest increase, jumping from 2.7% to 4.4%. This trend indicates the pressing financial pressures these insurers are grappling with. According to reports, approximately 50 of the 90 statutory health insurance providers are expected to raise their extra contributions, with the average rate projected to hit 2.5%—an increase from the current average of 1.7%.
The reasons for this tightening of budgets are evident. Rising costs associated with hospital stays and medication are driving the need for higher premiums. Dominik Kruchen, employer representative at TK, stated emphatically, "We demand from the next government to also bear the state's financial burdens and not transfer these costs onto contributors."
The financial impact on average employees and retirees is significant. For someone earning €4,000 per month, the extra burden could mean paying €16 more monthly, or €192 annually, with employers sharing this cost. People earning €3,000 would see their annual costs go up by approximately €150. At the new contribution limit of €5,512.50, the monthly costs skyrocket to over €70, totaling €843 per year.
For policyholders, there's potential for considerable savings, should they choose to switch insurers. Under current regulations, insured members have the option of switching their provider if they are informed about increases. „Insured individuals have the right to terminate their contract if there is an increase,” stated the Bundesgesundheitsministerium, providing reassurance to consumers. This move could save them hundreds annually, especially against the backdrop of rising pension contributions and other costs.
Switching isn't as complicated as it may seem. Individuals can change to more financially favorable plans without needing to formally cancel with their current insurer; simply applying for membership with another provider suffices. Options exist for seeking out insurers with lower extra contributions, such as BKK firmus, which offers one of the lowest rates at just 1.84%.
But it’s not just about the costs. While financial aspects are significant, potential enrolees should also take note of extra benefits and services offered, as these can vary widely among different insurers. The market is competitive, and many organizations present supplementary programs and incentives to retain members, such as discounts for referrals or participation in wellness maintenance.
This upcoming health insurance shake-up arrives at a pivotal point for German politics, coming just before the 2025 federal elections. Voters may be influenced significantly by how effectively their needs are represented by these increasing costs and what reforms might be promised to stabilize these expenses.
While changes are on the horizon, the key takeaway for individuals is to actively reassess their health insurance coverage. The intensified contributions mean it is truly time to compare rates and benefits across the board. With many health insurance providers yet to disclose their new rates, the opportunity to switch states remains open. Don't wait until it's too late; being proactive could result not just in financial relief but also access to more comprehensive health care.
