Germany stabilizes statutory health insurance contributions under Merz reform

On 10 July the Bundestag and Bundesrat approved a reform of the statutory health insurance (GKV). The key measure keeps the contribution rate at 17.5 % of gross wages, preventing the planned rise of one percentage point. Employees and employers will each continue to pay half of this rate, avoiding an extra €20 per month for a €4 000 salary. The package also raises co‑payments for prescription drugs, increases the daily hospital allowance from €10 to €15, and introduces other cost‑containment measures. While the reform is praised by insurers for temporarily stabilising contributions, critics warn about higher out‑of‑pocket costs and the need for broader structural changes in ambulatory care. The health‑insurance changes are part of a wider government reform agenda that also includes tax adjustments, higher child benefits and pension reforms affecting households across Germany.