The Techniker Krankenkasse (TK), the largest health insurance provider in Germany, has announced significant increases to its contribution rates starting January 1, 2025. With 11.8 million insured members, TK’s new contributions will rise from the current rate of 15.8% to 17.05% of gross salaries, reflecting the significant financial pressures facing the healthcare system.
Specifically, the supplementary contribution will soar from 1.2% to 2.45%, more than doubling the previous rate. This substantial increase is part of wider changes occurring across numerous health insurers, with others like Siemens BKK and Audi BKK also raising rates. Siemens BKK is increasing its rates by 1.2 percentage points to reach 17.5%, and Audi BKK will go up by 1.4 points to 17%.
The news of these increases is hardly shocking; experts have been warning consumers for weeks about the likelihood of higher rates starting next year. "The strong increases, especially in the areas of hospitals and medications, affect all health insurers. The current developments cannot be avoided by the TK," said Dieter F. Märtens, the alternating chairman of TK’s supervisory board, highlighting the root causes of the financial strain.
These rising rates are attributed to many factors, particularly the increases seen across healthcare costs. The financial situation of statutory health and long-term care insurance, described by Märtens as “more than strained,” reflects systemic issues within the GKV (statutory health insurance) structure, which many have linked back to prior governmental actions or lack thereof. Politically, TK’s administrative committee has reached out to the next German government, urging them to contribute to discomfort stemming from rising costs. "We demand from the next government, for the financing of state tasks, the state also has to take responsibility, and costs should not continue to be passed on to the contributors," stated Dominik Kruchen, the employer representative on TK’s supervisory board.
The increase will affect insured members directly, adding additional years’ costs to their previous contributions. For example, those earning gross monthly incomes of 4,400 euros, will see their contributions rise by 26.40 euros monthly or 316.80 euros annually. Meanwhile, employees with gross salaries of 3,500 euros would face increases of 21 euros monthly and 252 euros annually.
With this current rise, the average contribution rates place TK just below the average supplemental contribution of 2.5% expected for health insurers, inching higher as various expenditures within the health sector grip the entire system. Already, recent estimates had indicated insurers would need to lift rates by at least 0.8 percentage points to cover rising costs, but TK’s increase indicates the challenges it faces are more pressing.
Prior to the TK’s announcement, many insurers had already adjusted their rates. Observers and insiders alike have expressed concern over the so-called 'expenditure explosion' within the healthcare system. This growing trend of higher contributions and associated costs is not endemic to TK alone but reflects deep financial issues across all major health insurers, putting pressure on employees and employers alike.
Already, the talk of these contribution increases raises concerns among employers and workers alike, prompting calls for the recognizing of the shared responsibilities borne by both employers and employees during this period.
Overall, the next steps will rest heavily on how the incoming government responds to these challenges, particularly amid predictions of sustained financial strain placed on the insured population. Proactive steps from politicians toward stabilizing the healthcare finances could significantly determine the future direction of public health insurance costs. With TK’s upward adjustments overshadowing the system, the need for balanced and fair pricing could not be clearer.
