Krankenkassen face tough choices as German budgets tighten

publication date: Oct 12, 2009
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Who will go first? Which German krankenkasse, the statutory insurers who cover 90% of all Germans, will be the first to raise their price? The move is confidently expected this autumn or winter and will lead to a lot of turbulence as insurants faced with an extra charge of €10-20 a month switch to another insurer.

Meanwhile, last week the German authorities revealed a €7 billion hole in the government general health fund thanks to higher unemployment. That too means the new, rather more right wing government of Angela Merkel will be more than ever willing to do deals with the private sector.

A new system introduced at the start of the year which gives the krankenkassen much less control over how they run their businesses has also left a lot of very talented people in the larger krankenkassen kicking their heels. Budget cuts mean no change and no change means no innovation.


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