Germany's Health Overhaul
Germany's Bundestag Approves Sweeping Healthcare Reforms to Cut Costs and Stabilize System
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Key Points
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The package aims to narrow the statutory health insurance funding gap by introducing higher mandatory rebates from drugmakers, tighter limits on hospital cost increases, and changes to payments for a range of health services.
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Pharmaceutical industry expects about €4 billion in lost revenues in 2027 as a result of the reforms.
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Cannabis flowers will no longer be reimbursed; homeopathic and anthroposophic medicines, along with related services, will be excluded from supplementary benefit schemes; unscheduled full-body skin cancer screenings will be discontinued.
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The Bundestag-approved measure is still subject to Bundesrat opposition and could be sent to a mediation committee if not approved by the upper house.
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Protests by health-care staff have already begun across Germany and are expected to continue as the reforms are implemented.
Germany's Bundestag has approved a sweeping healthcare cost-cutting package, the largest shake-up of the country's statutory health insurance system in years. The reforms target spending on doctors, hospitals, pharmacies, and medicines — all in a bid to close a growing funding gap and keep payroll contributions affordable for workers, according to Charlotte Observer.
Health Minister Nina Warken said the changes aim to "preserve finances and keep contributions affordable" for insured individuals. But critics warn the package could stress hospitals and reduce access to care. Protests by healthcare staff have already begun across Germany and are expected to grow as the reforms take hold.
What the Reforms Actually Cut and Change
The package introduces higher mandatory rebates from drugmakers and tighter limits on how fast hospital costs can rise. Patients will also face higher co-payments for prescriptions. The government is also tightening rules on free co-insurance for spouses, a benefit many German families have long relied on, according to Island Packet.
Several benefits are being cut entirely. Cannabis flowers will no longer be covered by statutory insurance. Homeopathic and anthroposophic medicines — and related services — will be removed from supplementary benefit schemes. Unscheduled full-body skin cancer screenings will also end under the new rules, Modesto Bee reported.
Pharma Industry Warns of €4 Billion Revenue Hit
The pharmaceutical industry says the reforms will cost it about €4 billion in lost revenues in 2027 alone. Drug companies argue the higher mandatory rebates make Germany a less attractive market. Endpoints News reported that some drugmakers fear the bill could drive them out of the German market entirely.
Industry groups say the measures will deter investment in Germany's pharmaceutical sector. They warn that reduced competition could eventually raise prices or limit drug availability for patients. The government has pushed back on those claims, saying the savings are necessary to keep the system solvent.
Bundesrat Still Needs to Sign Off
The bill passed the Bundestag, Germany's lower house, but it still faces a key hurdle. The Bundesrat — Germany's upper house, made up of state governments — could block or delay the legislation. If the upper house withholds approval, the bill could be sent to a mediation committee, according to Star-Telegram.
That process could water down or stall parts of the package. The government is pushing for the core savings measures to take effect by 2027. The political debate is expected to intensify in the coming weeks as the Bundesrat weighs its response.
Healthcare Workers Push Back With Street Protests
Healthcare staff across Germany have already taken to the streets to protest the cuts. Workers in hospitals and clinics say the tighter spending limits will make it harder to deliver safe care. Further protests are planned as the government moves toward implementation, Charlotte Observer reported.
Critics say the reforms prioritize short-term savings over long-term patient outcomes. Some doctors' groups warn that ending preventive services — like full-body skin cancer screenings — could lead to higher costs down the line if cancers are caught later. The government says the system simply cannot afford its current level of spending.
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