German health insurance reforms cut contributions and prompt IKK merger

Health Minister Nina Warken is set to amend the statutory health insurance financing reform before its Bundestag vote. The plan softens the extra family‑insurance contribution, lowering it from 3.5% to 2.5% of insured income and keeping parents of children up to age 11 exempt. Federal subsidies for the system will rise by €1.4 billion in 2027, and the government will increase annual funding for low‑income health care by €750 million. The reform also revises the pharmaceutical rebate, raising the manufacturer discount from 7% to 15.5%.

In parallel, the IKK Brandenburg and Berlin and IKK gesund plus insurers have agreed to merge a year earlier than planned, forming a single IKK gesund plus with about 636 000 members. The combined fund will lower the supplemental contribution for former IKK Brandenburg and Berlin members from 4.35% to 3.39%, matching the rate of IKK gesund plus. The merger, pending approval from the Federal Office for Social Security, aims to strengthen financial stability and reduce costs for insured members in Berlin, Brandenburg, Saxony‑Anhalt and Bremen.