German Health Insurance Reform Passes Bundestag, Faces State Opposition

Germany's Bundestag has approved a contentious reform of the statutory health insurance system, which is now headed to the Bundesrat, where several states have expressed reservations. The reform aims to streamline the system but will result in the reduction or increased cost of certain benefits for insured individuals.

Key changes include a decrease in the co-payment for dental prosthetics, from 60 percent to 50 percent, meaning patients will bear a larger share of the cost. Additionally, co-payments for prescribed medications are set to rise, with the patient's share increasing from a range of 5 to 10 euros to between 7.50 and 15 euros. Co-payments for hospital stays will also increase.

The reform also introduces a new system for partial sick leave and partial sick pay, allowing employees to work reduced hours and receive proportional sick pay. While exemptions and hardship provisions will remain, the changes are expected to impact the financial burden on insured individuals. High-income earners will contribute more, with an increase in the contribution assessment ceiling. Furthermore, the free co-insurance for spouses or life partners will be abolished starting in 2028, requiring insured individuals to pay 2.5 percent of their taxable income for non-insured partners, with exceptions for parents of young children or those caring for relatives.