Premium Increases in Health and Care: DAK's Alarm Bells Ringing
Healthcare alert issued by DAK: Anticipated rise in healthcare costs and services anticipated.
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The health insurance powerhouse, DAK, is sounding the alarm about skyrocketing premiums in healthcare services. Their chair, Andreas Storm, is concerned that the government's plan to stabilize social security funds through loans in 2025 and 2026 will miss its mark. He's demanding a "stability pact" with permanent federal subsidies, along with a spending policy that prioritizes income,.
A study conducted by the IGES Institute, based in Berlin and commissioned by DAK, suggests a downer: contributions to statutory health and long-term care insurance could see a jump of 0.2 percentage points at the start of 2026. In 2027, health insurance may rise by another 0.3 percentage points, while long-term care insurance might see a 0.2 percentage point increase. This would equate to hefty premium increases for policyholders and businesses alike.
If no action is taken, the general contribution rate for statutory health insurance is predicted to reach an astounding 20% by 2035. As of now, the general contribution rate for statutory health insurance funds stands at 14.6%, plus a 2.9% average real additional contribution, amounting to a total of 17.5%.
[Sources: ntv.de, rts]
Exploring Potential Solutions
To quell these premium increases, DAK-Gesundheit and the IGES Institute are mulling over various strategies. Here's a sneak peek:
- Pointing Patients towards Cost-Effective Providers: By incorporating price comparison tools into its member apps, DAK guides patients to hospitals and pharmacies that deliver high-quality care at lower costs, ultimately decreasing overall expenses that pressure premiums.
- Bundled Case Rates: Trials on bundled case rates for specific procedures like knee replacements and heart surgeries aim to contain costs by offering a fixed, predetermined payment for each intervention. This encourages providers to manage resources efficiently and cut back on unnecessary expenditures.
- Embracing Digital Innovations: The implementation of electronic patient records (ePA) and teleconsult platforms, backed by insurers like DAK, can slash administrative costs and boost care coordination, reducing claim cycle times and combating fraud.
- Promoting the Use of Generics and Biosimilars: Although not directly linked to DAK and IGES in the sources, Germany’s public health insurance system encourages the use of generics and biosimilars via tendering. This practice helps reign in pharmaceutical spending, a significant contributor to insurance costs.
These approaches, which encompass patient steering, financial incentives for providers, digital health integration, and pharmaceutical cost control, represent the primary strategies proposed by DAK and the IGES Institute to combat the steep rise in premiums and ensure the longevity of Germany’s health and care insurance system.
- In response to the escalating health insurance premiums, DAK's Chair, Andreas Storm, is advocating for a "stability pact" with permanent federal subsidies and a policy that prioritizes income, as suggested by a study conducted by the IGES Institute.
- To counter the predicted increases in insurance premiums, DAK-Gesundheit and the IGES Institute are considering strategies such as incorporating price comparison tools for cost-effective healthcare providers in their member apps, implementing bundled case rates for specific procedures, embracing digital innovations like electronic patient records and teleconsult platforms, and promoting the use of generics and biosimilars.
- The implementation of these strategies, which include patient steering, financial incentives for providers, digital health integration, and pharmaceutical cost control, are proposed by DAK and the IGES Institute to combat the rising premiums and ensure the sustainability of Germany's health and care insurance system.
- Furthermore, vocational training in areas such as science, health-and-wellness, fitness-and-exercise, and nutrition can be encouraged to foster personal and professional growth, while understanding and managing personal-finance and business aspects can provide long-term solutions for individuals and companies affected by these insurance premium increases.
