German Health Insurance Reform Affects Millions of Insured

The coalition government plans a major reform of Germany’s statutory health insurance (GKV) aimed at curbing rising costs. The package would eliminate most of the existing family‑coverage benefit, replacing it with a 2.5 % surcharge on the principal earner’s gross income for the partner’s insurance. For a €3,000 monthly income this would add about €75 per month; at €6,000 it would rise to €150. Some groups would remain exempt, including partners with children under seven, disabled children, caregivers and retirees. The reform also proposes tighter controls on physician and pharmacy fees, higher co‑payments for medicines, and stricter discount rules for pharmaceutical companies and pharmacies. The draft budget forecasts a savings of at least €16.3 billion by 2027. The federal states (Bundesrat) have signaled strong resistance, demanding broader exemptions for families and older adults and warning that the cuts could jeopardise care provision in rural regions. The controversy could delay the legislation beyond the summer recess, as the government seeks to secure parliamentary approval before the break.