Sweeping Reforms Proposed to Tackle Billions in Healthcare Deficit

Germany's statutory health insurance (GKV) system is facing a historic turning point. On March 30, 2026, the Health Finance Commission, appointed by Federal Health Minister Nina Warken, presented its first report – with 66 concrete measures designed to save the system from financial collapse.

Billions in Deficit Growing Rapidly

The figures are alarming: The Federal Ministry of Health estimates the looming funding gap at over 15 billion euros in 2027. By 2030, it could grow to more than 40 billion euros. Without reforms, the average supplementary contribution rate would rise from currently around 2.9 percent to 3.7 percent in 2027 – and even to 4.7 percent by 2030. This would mean a massive additional burden for insured individuals and employers.

Higher Co-payments, Fewer Benefits

The ten-member expert commission proposes a total savings volume of around 63 billion euros. Among the most drastic measures is a 50 percent increase in co-payments: The minimum amount would rise from 5 to 7.50 euros, and the maximum amount from 10 to 15 euros. This alone is expected to save around 12 billion euros annually.

Further proposals concern savings from service providers such as medical practices, clinics, and manufacturers, amounting to up to 19 billion euros. The complete elimination of reimbursement for homeopathy and cannabis flowers is also on the list. In addition, the federal government is to take over around 10 billion euros for the contributions of citizens receiving social benefits, in order to relieve the burden on the health insurance funds.

Focus on Drug Prices

A central pillar of the reform is the reorganization of drug prices. In 2024, the GKV spent around 55 billion euros on medication. Patent-protected drugs account for only eleven percent of the prescription volume, but cause 56 percent of the costs. Individual therapies cost up to three million euros. The commission recommends that pricing be more strongly oriented towards benefit and that regular reassessments be introduced.

Digitalization as a Savings Engine

Minister Warken is also counting on accelerated digitalization of the healthcare system. AI-supported assistance systems, the electronic patient record, and telemedicine are intended to avoid duplicate examinations, reduce misdiagnoses, and make processes more efficient. A draft law on the digital strategy is to be presented shortly.

Criticism from All Sides

Reactions to the reform package are mixed. Doctors' representatives warn of an overload of practices and clinics due to the planned cuts. Patient associations criticize the higher co-payments as socially unbalanced. At the same time, healthcare costs continue to rise due to external factors – rising energy costs as a result of the Middle East conflict are placing an additional burden on hospitals and pharmaceutical companies.

The ministry described the proposals as the basis for the "most comprehensive financial reform of the GKV since its inception." Health Minister Warken announced that she would derive draft laws from the recommendations "very soon." The coming months will show which of the 66 measures actually make their way through the Bundestag – and how heavily the insured will ultimately be burdened.