Health Insurance Reform: Germany's Coalition Agrees 64 Changes

Newsworm
Newsworm
with
AFP
July 6, 2026
Germany's coalition has struck a last-minute deal to soften its statutory health insurance reform, easing burdens on families and insured members while scaling back the planned cut to the federal subsidy. The changes, agreed just days before a scheduled Bundestag vote, also lock in a fixed pharmaceutical rebate of 15.5 percent, though critics say it still falls short.
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Health Insurance Reform: Germany's Coalition Agrees 64 Changes
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The CDU/CSU and SPD have agreed on numerous changes to the draft law on statutory health insurance (GKV) reform. The coalition presented a catalog of more than 60 amendments to the Bundestag. These include slightly lower costs for families, a smaller reduction in the federal subsidy, and changes to the manufacturer's discount for pharmaceutical companies. Representatives of the health insurance funds generally welcomed the changes. The opposition criticized them.

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The coalition now intends to somewhat soften the planned burdens on insured members regarding co-payments and family insurance.

Key Changes at a Glance

  • Under the planned additional contribution for family insurance, parents with children up to and including age eleven are now to remain exempt. Until now, this was only meant to apply up to age six.
  • Planned increases to co-payments for insured members will also be softened, described by the insurers' association as "slightly limited."
  • The federal subsidy for the statutory health insurance funds will be reduced by €1.35 billion in 2027 and €1.55 billion in 2028, instead of the previously planned €2 billion. This reduction is to be financed by revenue from a tax on sugar-sweetened beverages.
  • The federal government's contributions to statutory health insurance for recipients of basic income support are to be €750 million higher than previously planned. They are now expected to reach €1 billion in 2027, approximately €1.25 billion in 2028, and then continue to rise as planned.
  • The previously planned dynamic manufacturer's discount for pharmaceutical companies is to be replaced by a fixed, constant discount of 15.5 percent, 8.5 percentage points higher than before. Total cuts to health and long-term care insurance amount to €6.7 billion.
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The law is scheduled to be passed in the Bundestag on Friday, with CDU's Carsten Linnemann also expecting swift passage through the Bundesrat.

Insurers Welcome Changes, but Voice Caution

The National Association of Statutory Health Insurance Funds (GKV-Spitzenverband), representing the insurers, broadly welcomed the changes. "The amendments to the financing reform that have now become known point in the right direction," said its chairman Oliver Blatt.

He noted that the rise in co-payments would be "slightly limited," that the federal government would pay "somewhat more toward funding healthcare for basic income recipients," and that overall "every area of the healthcare system" would contribute to savings. Whether contributions would actually remain stable as a result, however, was "not yet certain," Blatt said.

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He also criticized what he called a "protection program for the pharmaceutical industry," which now has less to fear in terms of rebates on drug prices.

Hospitals Say Changes Don't Go Far Enough

Criticism came from the German Hospital Federation (DKG). "These amendments do not save hospital care," DKG chairman Gerald Gaß told the "Neue Osnabrücker Zeitung." "They do contain selective improvements, for example to the nursing budget, but they change nothing about the fundamental problem: the cold structural transformation isn't being slowed down, it's being accelerated further."

Pharma Industry Warns of Further Damage

The pharmaceutical industry likewise expressed dissatisfaction. Even with the adjustments, the federal government was accepting "considerable additional damage to Germany as a pharmaceutical location," the association Pharma Deutschland stated. With the doubling of the manufacturer rebate, which would rise further still through additional measures with no time limit, "the federal government is now knowingly risking fresh damage to the location."

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Greens Slam Late-Night Amendment Dump

Green Party parliamentary manager Irene Mihalic sharply criticized the fact that the extensive package of amendments, 64 changes spanning 278 pages of text, did not reach opposition parties until late on Sunday evening. "Careful deliberation on the comprehensive amendments, with their far-reaching effects on healthcare provision, hospitals and their staff, can hardly be guaranteed under these circumstances," Mihalic told the news agency AFP. "We call on the coalition to ensure a proper, careful deliberation process in parliament."

CDU Confident of Friday Passage

CDU General Secretary Carsten Linnemann, for his part, expressed confidence that the law could be passed in the Bundestag on Friday and then directly in the Bundesrat as well. He saw no prospects of success for possible legal challenges over allegedly too-short deliberation periods for parliament to review the amendments. What mattered, he said, was that the reform succeed in keeping insurance contributions stable, since rising contributions were "poison" for Germany's labor market.

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Left Party Criticizes Burden on Insured

Even after the adjustments, insured members and employees would "continue to bear the main burden of this failed health policy," criticized Left Party health expert Tamara Mazzi. Despite cuts of 6.7 billion euros to health and long-term care insurance, she said, it remained "a mystery" how contributions were supposed to be stabilized in the long term as a result.

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