Germany's Rösler Opposes Plans To Impose Additional Health Contributions

by Ulrika Lomas, Tax-News.com, Brussels

01 February 2010

German Health Minister Philipp Rösler has urged health insurance companies in Germany to make every effort to avoid levying additional health contributions on individuals (Zusatzbeiträge), emphasizing the fact that the proposed increases, in their current form, are simply “unsocial”. Leader of the Christian Social Union (CSU) Horst Seehofer has also expressed his fierce opposition to the plans, demanding government intervention to resolve the matter.

According to Health Minister Rösler, there is a desperate need now to adopt a new approach towards the levying of statutory health insurance contributions in Germany. Defending his comments, Rösler argued that plans by certain health insurance companies to raise existing contributions by as much as EUR8 a month were completely unjust, given that both low and high income earners would be required to pay the same amount.

Rösler emphasized the need to maintain a sense of social balance, and announced that a government commission would be established in March specifically in order to address this issue.

CSU leader Horst Seehofer has underlined the need for government intervention, referring to the proposed surcharges as totally unacceptable. Indeed, Seehofer is convinced that binding agreements on cost reductions and savings within the health service must urgently be put in place. The introduction of additional contributions should be a last resort, he added.

Sylvia Bohlen-Schöning, Vice President of the Federal Insurance Office, has confirmed that officials will carefully examine every application from companies seeking to impose additional contributions. While savings do inevitably need to be made, she continued, possibilities are very limited. The Federal Insurance Office is currently examining seven such applications, she revealed.

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