The GKV stands for Gesetzliche Krankenversicherung....is the public/statutory health insurance system (which covers about 90-percent of the population).
Basic isssue.....it has expenditures that are rising much faster than its revenues. This has led to repeated yearly deficits, and what you'd consider as depleted reserves.
I should add here....it's mandatory to participate in the public health insurance (the “Krankenkassen”).
How contributions work? Well....they are split between employees and employers (general rate of 14.6-percent with some type of variable additional rate).
Money flows into a central health fund (Gesundheitsfonds) and then is distributed to the individual 'policy'.
Just about every year....expenditures outpace income....figure 7-percent usually.
Projected deficit of 10-to-15 billion Euro for 2027.
As you can imagine....clinics, doctors and hospitals are under massive pressure to hold costs down.
Why this keeps happening? Simply a demographic game....retirees, fewer contributors. Add onto it...medical and technological progress (expensive new treatments)
A special commission is renovate things....bring reform....for 2026.
The Merz coalition left to clean this up? More or less. There's simply no funds left to fill the gap unless you bump taxes up in some fashion.
My final assessment....a tax-reform will occur, but probably only buy the coalition five to seven years....where this will repeat again.
As for the new tax sources? VAT going to 21-percent.....a likely sugar tax on sodas....higher-income folks taxed at a higher rate.
No comments:
Post a Comment