Germany’s cabinet on Wednesday approved a draft bill to overhaul the statutory health insurance system, targeting savings of €16.3 billion ($19.08 billion) next year as healthcare costs continue to climb.
Rising expenditures are projected to create a €15.3 billion shortfall by 2027, according to a commission of experts in March. Without structural reforms, the deficit could widen significantly, potentially reaching €40 billion by 2030, the commission cautioned.
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Efforts to rein in health insurance costs, which are jointly funded by employees and employers, form a key pillar of Chancellor Friedrich Merz’s plan to revive Germany’s sluggish economy by easing financial pressures and reducing bureaucratic burdens on businesses.
