Germany Health Insurance Premiums Will Rise in 2026

Germany health insurance premiums will rise in 2026, leading statutory insurers said ahead of a key Bundestag vote on a new savings law. The Techniker Krankenkasse and the federation of company health funds (BKK) both warned that the planned measures will not stop increases in the additional contribution rate next year. In their view, many funds will still have to charge more because they are legally required to rebuild their financial reserves.

The Health Ministry of Nina Warken has presented the savings package as a step to avoid another round of automatic increases at the turn of the year. The stated goal is to hold the nationwide reference value for the average additional contribution at 2.9 percent. This value is the part of the statutory health insurance premium that sits on top of the general 14.6 percent rate of gross salary, which employers and employees share. But insurers say that the 2.9 percent figure is only a guideline and not a ceiling, and that actual rates paid by members of many funds will cross 3 percent in early 2026. WeLiveIn.de is not a tax advisor.

What the government is trying to do

The federal cabinet has approved a €2 billion savings plan. Parliament is expected to vote on it this week. The central idea is to slow spending growth inside the hospital system, which is one of the largest cost drivers in statutory health insurance. The ministry wants to put brakes on how fast hospital compensation can rise in 2026 and suspend a clause that would otherwise allow higher payments that go beyond measured cost increases.

Health Minister Warken has said that Germany needs to break the pattern of yearly jumps in contributions to statutory health insurance. Her ministry argues that if hospital costs can be held closer to actual inflation in hospitals, and if automatic upward adjustments are paused, then funds will not have to pass as many costs to members in January. She has described the package as a first move to stabilize financing and to ease the burden on workers and employers.

Why funds still expect higher premiums

Insurers and employers do not believe the planned reductions in hospital spending will reach the full €2 billion target in practice. Internal projections from major funds suggest that instead of saving €1.8 billion in the hospital sector, the measures may only achieve around €1.3 billion. The Allgemeine Ortskrankenkassen (AOK) also warn that one rule in the system still requires insurers to cover 100 percent of agreed pay rises in hospital wage agreements. Employers’ groups argue that this rule cancels part of the savings effect, because it pushes higher payroll costs for clinics directly onto insurers.

This is one reason why the GKV Spitzenverband, which represents statutory insurers, has called the plan only a first step. In its submission to the Bundestag health committee, the association said funds will still need at least 0.1 percentage points more in contributions on average to refill reserves to the levels required by law. It expects that as a result, the effective average additional contribution actually charged to members in January 2026 will exceed 3 percent. In plain terms, that means many insured people will pay more than they do today, even if the official reference value remains 2.9 percent. WeLiveIn.de is not a tax advisor.

Pressure from hospital financing

The hospital sector is at the center of this dispute because almost every part of the savings law touches hospital reimbursement. The plan limits how much hospitals can charge above their proven cost increases. At the same time, unions and hospital associations argue that this kind of limit is not realistic in the current financial climate for clinics.

The service union ver.di and the German Hospital Association have warned that the savings package will harm care quality and worsen what they describe as the already severe financial stress on hospitals. They say that hospitals face sharp increases in energy costs, materials, and other operating expenses, and that these costs are not being fully compensated. They also warn that if clinics are forced to absorb these shocks without more money, they may try to cut staff. In that case, they argue, patients could face longer waits or fewer services.

Employers’ groups join that criticism from a different angle. They say the design of the package is internally inconsistent. On one side, the ministry wants to hold down base payments to hospitals. On the other side, current rules still require insurers to finance full wage increases that come from collective bargaining in the hospital sector. This, they say, limits how much real-world savings the law can deliver, and shifts the unresolved gap back to members through higher premiums.

How contributions are calculated

Every employee in statutory health insurance pays two parts. The first part is the general contribution rate of 14.6 percent of gross salary. That base rate is the same in every fund, and employers and employees split it. The second part is the additional contribution, which is set individually by each fund. This extra percentage is where most changes happen from year to year.

For 2025, the reference value for the average additional contribution has been 2.9 percent. The Health Ministry wants to hold that same reference value for 2026. But the final number that each person pays is the actual additional contribution chosen by their own fund, not the reference value. This is why two workers with the same salary can still pay different total amounts, depending on which insurance fund they belong to.

Funds normally announce any changes to their additional contribution near the end of the year for the coming January. The ministry usually publishes the national reference value by 1 November. This year, that formal step is being delayed until after the Bundestag finishes work on the savings law, in order to base the announcement on the final text. WeLiveIn.de is not a tax advisor.

What happens if your fund increases its rate

If a statutory health insurance fund raises its additional contribution, members receive a special right to cancel and move to a different fund. This mechanism is designed to create pressure for efficiency and prevent unchecked increases. After a wave of sharp increases in early 2025, many people already used this option.

For 2026, funds and their associations say that many insurers will again have to lift their additional contribution in order to comply with reserve requirements. Under German law, each fund must hold certain minimum reserves to protect against shocks in spending. When reserves fall below the threshold, the fund must rebuild them. That rebuild usually happens through higher additional contributions. According to Techniker Krankenkasse and BKK, this is now the main driver for the expected rises in January 2026, more than any single new medical benefit.

Structural problem behind Germany health insurance premiums will rise

The warning that Germany health insurance premiums will rise again in 2026 is not only about one budget cycle. It is also about the structural gap between healthcare costs and contribution income. According to recent internal assessments shared with members of parliament, spending in the statutory system is growing faster than contribution revenue. Observers describe a recurring annual shortfall on the order of six to eight billion euro.

Part of the reason is demographic. An older insured population consumes more hospital and outpatient care. Another part is inflation inside the healthcare sector, which does not always match general inflation in the wider economy. Medical wages, specialist equipment, hospital energy costs, digital infrastructure, and regulated safety standards all become more expensive. Insurers argue that unless there is either new money from public sources or deeper reforms that change how hospitals are financed, they will keep having to ask members to pay more.

Hospital representatives add that hospitals themselves are in crisis, not receiving too much money. They point to rising energy costs and materials costs, and they say that being forced to “save” now would only postpone future claims for emergency funding. The union ver.di calls the current savings plan unacceptable and warns that it could weaken care in regions where clinics are already under pressure.

What expats in Germany should know

For expats working in Germany under statutory health insurance, this discussion has direct financial relevance. If the additional contribution of your fund rises above 3 percent in January 2026, your net pay will decrease slightly because health insurance contributions are taken directly from gross salary. This applies even if you are not a German citizen. It applies as long as you are insured in the statutory system and not in private insurance. WeLiveIn.de is not a tax advisor.

Expats should also be aware of two practical points. First, you have the right to change your fund if it raises its additional contribution. Funds must inform members about their new rate and about the right to switch. Second, different funds can charge different additional contribution rates, even though they all provide the core legal benefits. That means it can be worth comparing rates once the final 2026 announcements are published. Members can save money by moving, especially if two large funds in the same region set different additional contribution levels.