Cut tax subsidy for health insurance

Government wants to cut tax subsidy for health insurance

06/03/2014

The German Federal Government is planning further cuts in subsidies for statutory health insurance (GKV) in the billions. The statutory health insurance funds, social organizations, trade unionists and the opposition parties are criticizing it.

Grants are temporarily severely curtailed
The German Federal Government plans to temporarily reduce the billions of subsidies to the statutory health insurance (GKV) vigorously. The federal subsidy will be cut in the coming year in view of the large financial cushion of the GKV by 2.5 to 11.5 billion euros, as the Ministry of Health in Berlin explained. The goal is to achieve a balanced federal budget without new debt. Health insurance funds, social organizations and the opposition criticize the project.

From 2017, the federal subsidy should be increased permanently
According to the Ministry of Health, by the end of 2013 the SHI had accumulated a cushion of € 30.3 billion, of which € 13.6 billion for the health fund and € 16.7 billion for the health insurances. „This is a very solid cushion“, says Minister of Health Hermann Gröhe (CDU). „We can therefore afford to use this reserve in 2015 to temporarily provide funds for fiscal consolidation.“ In the current year, as planned, only 10.5 billion euros from tax revenue to the health insurance flow. For 2016, 14 billion are planned and according to Gröhe was agreed with Federal Finance Minister Wolgnag Schäuble (CDU), as compensation for the federal subsidy from 2017 „durable“ to increase to 14.5 billion euros.

Minister of Health and Finance Minister agree
As Gröhe said, he made it clear in the budget negotiations that the money, which will be made available for budgetary relief in 2015, would have to be returned to the health fund. „I agree with the Minister of Finance.“ The plans would have no impact on the contributions, since the funds would be available in 2014 and 2015, the full 14 billion from the fund. This should be financed from the fund reserves.

Acceleration program for contribution increases
Dr. Doris Pfeiffer, chairwoman of the GKV-Spitzenverbands, warned: „Cutting the federal subsidy would be an acceleration program for contribution increases.“ By 2015 at the latest, the gap between revenue and expenditure on again. According to recent expert estimates, the members of the cash register have to reckon with additional contributions of around 1.5 percent of the income in three years. As Pfeiffer emphasized, the federal subsidy serves to co-finance non-insurance benefits such as the non-contributory insurance of children. The health insurance companies spend more than 20 billion euros annually on such family benefits.

Criticism of social organizations and trade unions
Criticism came also from the association of the Ersatzkassen (VDEK), which represents among other things with the technician health insurance (TK) and the Barmer GEK the two largest cash registers. The head of the association Ulrike Elsner called the cuts „unacceptable“ and that this „the financial pressure on the health insurance companies“ increase. She also said the plans were showing, „how arbitrarily the legislator deals with promised tax subsidies.“ The Joint Welfare Association demanded, instead of reaching into the social funds, the federal government had to tax the fiscal consolidation more rich finally stronger and the Social Union Germany (SoVD) accused the government „indiscriminate reduction orgy at the expense of the statutory health insurance“ in front. The unions also received criticism. Thus spoke DGB board member Annelie Buntenbach of one „Raid by the federal government through the social insurance funds.“

Opposition parties agree on rejection
The opposition parties did not spare criticism. So called Alliance 90 / The Greens the „budgetary tricks“ the government coalition as shameless. A statement by the Greens stated: „It is all about just loosening up on the fast budget for the federal budget.“ The liberals reacted sharply. FDP Presidium member Volker Wissing said the cuts are nothing else „as a misappropriation of employees' contributions to public finance.“ And the health spokesman for the Left Group, Harald Weinberg, said that if the SHI system were to be deprived of six billion euros „insured persons have to pay every single euro to their health insurance company each year without the involvement of the employers.“ These are for each of the approximately 50 million contributors 120 euros. (Sb)

Image: Thomas Siepmann