Daniel Bahr rejects reduction of the cash contributions

Federal Minister of Health Daniel Bahr against reduction of cash contributions

17/06/2011

The contributions to the statutory health insurance could be lowered due to the significantly improved revenue situation in the health fund, but the Federal Minister of Health Daniel Bahr (FDP) obviously has another in mind. Instead of using the surplus to reduce contribution rates, the additional revenue should remain as a reserve for worse times in the health fund. The CSU on the other hand, at least in the medium term, promised to cut contributions.

Thanks to the improved overall economic situation, the health fund currently has a not insignificant surplus in revenue. Despite total expenditure of around 180 billion euros, a slight buffer could be set up, the Federal Minister of Health told „Rheinische Post“. However, the additional revenue should not be used to reduce the contribution, but remain as a reserve for worse times in the health fund, so the plans of Daniel Bahr (FDP). The collection of further additional contributions could possibly be avoided by the improved financial situation of the health fund in the coming year.

No contribution reduction due to surplus in the health fund
While numerous health insurance companies are currently struggling with considerable financial difficulties, according to media reports, and around 20 statutory health insurance companies are threatening to levy additional contributions or cut benefits, the overall situation of the health fund is currently much more positive. The good economic development of the past few months has allowed a slight financial buffer to be built up, which theoretically would be available to reduce contribution rates. But the Federal Minister of Health has talked with the „Rheinische Post“ against such a reduction in contributions, pointing out that, in his view, it makes no sense, „If necessary, to lower the contribution rate in the statutory health insurance system to a minimum in order to raise it again at the next economic fluctuation“. Daniel Bahr (FDP) added: „We started with a billion dollar deficit in this legislative period. I am glad that we now have a small buffer at about 180 billion euros total expenditure.“

Health insurance contributions could decline in the medium term
Meanwhile, the CSU has called for a reduction in contributions should the health fund's financial situation continue to develop so positively next year. The CSU health expert Johannes Singhammer told the „Financial Times Germany“, that over „a relief for the insured“ should be talked about, the economy and thus the revenues in the health fund should continue to develop comparatively well in the coming year. Contribution reductions could be promised at least in the medium term. However, Johannes Singhammer (CSU) also concludes that premium adjustments would initially make little sense, as the health fund's forecasts for the end of the year are not yet sufficient for a sustained reduction. However, this raises the question of the amount of the surplus in the health fund would have to fail, so that the black-yellow government coalition actually penetrates to a contribution reduction. Although both the CSU and the FDP have always argued in the past for a reduction in the burden on both workers and employers, but the scope of now offers, the government parties do not seem to use this.

Additional contributions could be avoided thanks to revenue surplus
The surplus in the health fund could theoretically also be used in addition to the general reduction of contributions to help particularly ailing health insurance funds and thus avoid the further collection of additional contributions to the insurance. For this, however, not only the allocation modalities of the health fund would have to be revised, but the governing coalition would also have to move away from its previous sand point compared to the additional contributions. Because above all the FDP as well as the CDU and CSU see in the additional contributions an efficient instrument, in order to strengthen the competition among the health insurance companies. That with the collection of additional contributions often a kind of vicious circle is triggered, which can lead in the worst case to the bankruptcy of the health insurance, as currently with the City BKK, is thereby regularly ignored or simply accepted.

Additional contributions often cause further financial problems
Numerous ailing health insurance companies are currently looking for a financially strong merger partner in order to avoid the collection of additional contributions, according to media reports. Because so far, the collection of additional contributions from the affected health insurance companies has always caused significant loss of members and a restructuring of the insured structure. Above all, young, healthy members left the coffers, so that disproportionately many old, health-afflicted insured remained behind. However, these often cause more costs than the health insurance companies take over the corresponding contributions, so that possibly even higher additional contributions would be due, which could have a renewed membership loss. In the end, the health insurance companies are threatening to slip into a financial imbalance, from which they can hardly free themselves without outside help. (Fp)

Also read:
20 health insurance companies in financial difficulties
City BKK insured persons face a loss of benefits
Health insurance companies demand reduction of doctors surplus
Health insurance companies should show balance sheets

Picture: Gerd Altmann