Germany: new health reform causes the wrath of employers and trade unions

Towards the introduction of fixed contributions borne by the insured party only.  Passed after months of controversy, the “Act on Public Health Insurance Funding” (Gesetz zur Finanzierung der gesetzlichen Krankenversicherung) mainly aims to contain public funds’ deficit – around €9 billion in 2011.  To achieve this goal, the reform, developed by German Minister of Health Philipp Rösler (FDP), provides, first, to increase contributions to health insurances, from 14.9 to 15.5% of gross earnings in January. This 0.6% increase will be equally shared by employers and employees. Thus, employers’ share will go from 7% currently to 7.3% of gross earnings. However, it will then be frozen. Thus, in the future, extra expenditure will only be borne by the insured parties. Public funds may also ask their insured parties for additional fixed contributions which, unlike the current system, won’t be related with the income level. Thus, a senior executive and a secretary will pay the same amount if they are affiliated with the same public fund.  Low-wage earners will receive State help.
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oped by German Minister of Health Philipp Rösler (FDP), provides, first, to increase contributions to health insurances, from 14.9 to 15.5% of gross earnings in January. This 0.6% increase will be equally shared by employers and employees. Thus, employers’ share will go from 7% currently to 7.3% of gross earnings. However, it will then be frozen. Thus, in the future, extra expenditure will only be borne by the insured parties. Public funds may also ask their insured parties for additional fixed

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