"We've Got This, Health Insurers," Klingbeil Promises Federal Budget Relief
Klingbeil pledges financial injection for healthcare insurance funds
In response to the distress call from the new health minister, Finance Minister Lars Klingbeil has promised federal funding to support the struggling health and long-term care insurance systems. However, it's clear that the issues cannot be permanently fixed by throwing more tax money at them. The exact amount of the subsidy remains a mystery.
Following his bold declaration of fundamental reforms to social security systems, Klingbeil plans to initially support the cash-strapped health and long-term care insurance with money from the federal budget. "We're well aware that the health and long-term care insurance are facing a tough situation and we need to stabilize here," the SPD leader told the German Press Agency (dpa). "But we can't keep patching up the problems with endless tax money," he warned.
Health Minister Nina Warken had earlier demanded billions for both insurance systems to improve their financial situation and prevent further increases in contribution rates. Both branches are operating at a loss.
Warken highlighted the federal government's responsibility for billions in debt to both the health and long-term care insurance, which includes uncovered contributions for citizens' allowance recipients and non-insurance-related services from the corona period. She estimated the shortfall for citizens' allowance recipients at ten billion euros and the federal corona debts at almost six billion euros. Klingbeil didn't directly address this argument and didn't reveal the size of the promised federal subsidy to the dpa.
The SPD chairman emphasized the importance of a strong social state and suggested a more creative approach than just asking people to work longer or cut services in the healthcare sector.
Klingbeil also defended Labor Minister Barbara Bas' proposal to include civil servants in the statutory pension insurance. "I also believe we can discuss who pays into the pension fund and how much," the minister emphasized. Klingbeil: "That's an important debate, and we need this openness." The Chancellery had already rejected the proposal, arguing that it's not in the coalition agreement.
Proposed Reforms and Federal Budget Subsidy Insights
While the exact size of the federal budget subsidy remains unknown, the search results suggest several proposed structural reforms for the health and long-term care insurance systems in Germany:
- Hospital Reform: The hospital remuneration system could be overhauled, moving from DRG-based flat-rate fees to a model where hospitals are paid for maintaining certain services (Vorhaltepauschalen) and grouped into service groups.
- Health Insurance System: The government wants to stabilize health insurance finances, facing rising contribution rates and a widening gap between revenues and expenditures. Reimbursement conditions for pharmaceuticals are unlikely to improve due to fiscal constraints.
- Community Pharmacies and Telemedicine: Strengthening local community pharmacies and accelerating telemedicine and digital triage are priorities.
- Investor-Owned Medical Care Centers (iMVZ): Plans include increasing transparency regarding the ownership structure of iMVZ and ensuring appropriate use of funds through new regulations.
For detailed information on specific budget allocations, it's best to consult official government announcements or press releases.
- The social security reforms proposed by Finance Minister Lars Klingbeil include a focus on the health and long-term care insurance systems, with plans to overhaul the hospital remuneration system and group hospitals into service groups, as well as enhancing transparency regarding Investor-Owned Medical Care Centers (iMVZ) and ensuring appropriate use of funds through new regulations.
- In the realm of politics and finance, Klingbeil also stressed the importance of a strong social state, proposing a more creative approach beyond just asking for increased work hours or cuts in healthcare services.
- As part of the health-and-wellness sector, strengthening local community pharmacies and accelerating the adoption of telemedicine and digital triage are priorities for the federal government, seeking to address the rising costs and financial challenges within the health and long-term care insurance systems.
