Should high earners pay more into health insurance? This is the proposal made by SPD health politician Christos Pantazis. The Union promptly rejects this initiative, claiming it will harm Germany’s economic location.
The Union faction has dismissed a proposal from the SPD for increased health insurance contributions for high earners. “This unnecessarily increases the costs of work and performance, which harms Germany’s economic location,” said Albert Stegemann (CDU), the deputy head of the Union faction responsible for health policy, to the German Press Agency.
According to the coalition agreement, they have agreed to avoid burdening contributors. “Therefore, we will work together with the SPD to fundamentally address the financing issue. In particular, we need to make the system more efficient and thereby reduce costs,” said Stegemann.
SPD Politician: No Thought Restrictions
SPD health expert Christos Pantazis proposed that high earners should contribute more to the statutory health insurance due to the strained financial situation of the funds. Specifically, he advocated for an increase in the so-called contribution assessment ceiling by about €2,500 to align it with the level of the pension insurance assessment ceiling.
“To sustainably stabilize the finances of the GKV, we must impose no thought restrictions.”
The contribution assessment ceiling refers to the maximum gross salary up to which social security contributions are paid. Income above this limit is exempt from contributions. Currently, it stands at €5,512.50 monthly in health insurance.
According to the Federal Statistical Office, nearly 30% of full-time employees earn an annual gross income at or above the contribution assessment ceiling and would thus be affected by an increase.
Greens and Social Association SoVD Also In Favor
Janosch Dahmen, the health policy spokesperson for the Greens, also advocated for an increase, stating, “In addition to comprehensive structural reforms, it is correct to gradually raise the contribution assessment ceiling along with the insurance obligation limit to the level of statutory pension insurance.”
The proposal has also received support from the Social Association SoVD. Chairwoman Michaela Engelmeier stated, “The SoVD has been calling for years to raise the insurance obligation limits and at least adjust the contribution assessment ceiling to the level of the statutory pension insurance. Hence, we welcome this initiative.”
Significantly Less Net Income from Gross
According to a report by “Bild,” citing calculations from the Taxpayers’ Association, for instance, a single individual with a gross monthly income of €6,000 would have to pay an additional €406 per year to health insurance, while a single with €7,000 gross would owe €1,170 more annually.
A family of four with a gross monthly income of €6,500 would have €865 less net income per year, while at €7,500 gross, they would see a reduction of nearly €1,700.