Klingbeil pledges injecting funds into health insurance tax revenues
In a move aimed at stabilizing the ailing health and long-term care insurance funds, Finance Minister Lars Klingbeil, in a call for help from the new health minister, has promised federal budget support. However, he made it clear that the gaps won't be permanently filled through tax money.
"We're in the hot seat here, and we need to sort things out," Klingbeil told the German Press Agency (dpa), addressing the ongoing issues in the health and long-term care insurance. Yet, he warned that repeatedly patching up the problems with more taxes isn't the solution.
The SPD leader also announced structural reforms in the social security systems, which would initially receive federal budget support. He emphasized that it's crucial to ensure a strong social security system that working individuals can depend on.
In an earlier appeal, Federal Health Minister Nina Warken demanded billions for both insurance systems to shore up their financial situation and prevent hikes in contribution rates. Both insurance sectors have been operating in the red.
Warken highlighted the responsibility of the federal government for the billions in deficits in both the health and long-term care insurance, with a substantial part due to uncovered contributions for benefit recipients and non-insurance-related services from the coronavirus period. She put the shortfall for benefit recipients at ten billion euros and the corona debts of the federal government at almost six billion euros.
Klingbeil responded to Warken's arguments indirectly and did not reveal the size of the promised federal subsidy. Despite the initial support from the federal budget, the reforms are meant to be lasting and structural, not just quick fixes.
Klingbeil also defended the proposal from Social Democratic Labor Minister Barbara Bas to include civil servants in the statutory pension insurance, which has been met with resistance. Klingbeil believes this is an important debate that requires openness. The Chancellery, however, has already dismissed the suggestion due to its absence in the coalition agreement.
- Lars Klingbeil
- Health insurers
- Long-term care insurance
- Nina Warken
Enrichment Data:
The plan for social security reforms, led by Federal Finance Minister Lars Klingbeil, involves both health and long-term care insurance systems. In addressing Germany's aging population, an increase in health care and insurance costs is inevitable, and Klingbeil acknowledges this as a priority for reform and cost reduction.
While the structural reforms aim to stabilize and strengthen these social security components, the government is also considering tax increases, as outlined in the coalition agreement, to secure sufficient financial resources for these reforms and investments.
Klingbeil is also involved in budget negotiations at the European level and is responsible for distributing funds from Germany's extensive infrastructure package (€500 billion), which may indirectly support health and long-term care funding priorities. Overall, the proposed reforms are aimed at making structural changes that are bold and long-lasting, not just temporary solutions.
- Finance Minister Lars Klingbeil has promised federal budget support for struggling health insurers, as part of a plan for structural reforms in social security systems.
- The ongoing issues in the health and long-term care insurance sector require urgent attention, according to Klingbeil, and he emphasized the importance of a strong social security system that working individuals can depend on.
- While initial federal support may be provided, Klingbeil believes the reforms should aim for long-lasting changes rather than just quick fixes, and he has also suggested that tax increases could be considered to secure sufficient financial resources for these reforms.
