Germany's Bundestag on Thursday approved a sweeping austerity package for the statutory health insurance system designed to curb rising contributions for millions of insured citizens. The coalition-backed legislation aims to close a projected funding gap of around 19 billion euros in 2027 by imposing spending brakes on clinics, pharmacies, and the pharmaceutical sector.
The measure raises out-of-pocket costs: patients will pay between 7.50 and 15 euros for prescription medications, up from the previous 5-to-10-euro range, while spouses lose free co-insurance status and must obtain their own coverage. The German Hospital Federation has warned that half of all clinic locations could be at risk, with up to 140,000 hospital jobs threatened, while physicians' associations in Berlin caution the cuts could reduce doctor availability and lengthen waiting times.
The bill still requires approval from the Bundesrat, the upper house representing Germany's states, before taking effect.