"We Need a Healthcare Overhaul" – Klingbeil Promises Budget Support for Struggling Insurance Systems
Klingbeil announces funds injection for health insurance taxation
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In response to the financial woes plaguing health and long-term care insurance, Finance Minister Lars Klingbeil has vowed to provide federal funds to shore up these essential systems. However, he underscored that the issues can't be permanently fixed with more tax money. The amount of the bailout remains undisclosed.
The SPD leader acknowledged the challenging situation facing both insurance sectors and stressed the need for stabilization. He, however, cautioned that continuous fixes through tax revenue aren't the long-term solution.
Klingbeil's remarks come on the heels of Health Minister Nina Warken's plea for billions to bolster the financial health of both insurance systems to stave off further premium hikes. Both branches are currently racking up losses.
Warken raised the issue of billions in government deficits, highlighting that the federal government bears responsibility for the red ink in health and long-term care insurance, with part of it stemming from uncovered contributions for citizens' allowance recipients and non-insurance-related expenses incurred during the pandemic. She claimed the deficit for citizens' allowance recipients alone is an astronomical €10 billion, while the federal pandemic debts total nearly €6 billion. Klingbeil did not respond directly to this argument and declined to disclose the size of the promised federal subsidy to the German Press Agency (dpa).
In the coalition agreement, black-red promised to collaborate with experts to design "fundamental and courageous structural reforms." Klingbeil indicated this process was underway and emphasized the importance of finding innovative solutions beyond simply forcing workers to labor longer or making cuts to healthcare services. He also backed the proposal by Labor Minister Barbara Bas to include civil servants in the statutory pension insurance. He expressed openness to debating who pays into the pension fund and how much. Critics, however, point out that the Chancellery has already dismissed the proposal, arguing it was not included in the coalition agreement.
Germany's Healthcare Reform: Key Initiatives
- Hospital Transition: The proposed hospital reform aims to shift from a Diagnosis-Related Group (DRG) system, which relies on flat-rate fees, to a service-based payment model. The restructuring is expected to have a significant impact on hospital planning and regional care strategies.
- Investor-Owned Medical Care Centers (iMVZ): The government plans to enact legislation to increase transparency regarding ownership and ensure proper usage of funds in iMVZs. While the new regulations are less restrictive than initial proposals, they may still limit investment or even prohibit iMVZs altogether in certain areas.
- Boost for Community Pharmacies: Efforts are underway to strengthen community pharmacies, particularly in rural areas, by providing increased remuneration and reducing red tape. This is part of broader initiatives to enhance local healthcare services.
- Telemedicine and Digital Triage: The government is expediting the integration of telemedicine and digital platforms for early assessments and access coordination. This move includes the development of hybrid DRGs and the promotion of digital healthcare services.
- AMNOG Process Evolution: The AMNOG process is being refined with a focus on personalized medicine and supply security. However, budget constraints are likely to limit prospects for improved reimbursement conditions for pharmaceuticals.
Federal Budget Aid Distribution
- Hospital Transformation Fund (KHTF): This fund, part of the hospital reform, offers €50 billion for projects aimed at modernizing hospital care infrastructure. Eligible ventures include digital transformation, construction, and medical equipment upgrades. Hospitals and the federal states can submit applications to access these funds, with the goal of ensuring sustainable healthcare provision in the future.
- Fiscal Support for Healthcare System: The government is committed to bolstering the financial resilience of the statutory health insurance (SHI) system and reducing the structural gap between revenues and expenses. This endeavor involves finding sustainable financing solutions while navigating the rising financial pressures on the system.
- The SPD leader, Lars Klingbeil, has pledged to provide federal funds to strengthen the financial health of both health and long-term care insurance, highlighting the need for stabilization, but emphasizing that continuous fixes through tax revenue aren't the long-term solution.
- Health Minister Nina Warken is advocating for significant government support to bolster the financial health of both insurance systems, citing billions in government deficits due to uncovered contributions for citizens' allowance recipients and non-insurance-related expenses incurred during the pandemic.
- While working on promising a federal subsidy, Klingbeil has expressed that the government is collaborating with experts to design structural reforms in the healthcare sector, aiming to find innovative solutions beyond labor extension or cuts to healthcare services, and has also supported a proposal to include civil servants in the statutory pension insurance.
