Warken keeps health tax on capital income 'not effective' - Germany's Health Minister Unveils Bold Plan to Slash Rising Healthcare Costs

Health Minister Julia Warken has outlined plans to cut costs in Germany's healthcare system. She stressed that all stakeholders must play a part in reducing spending. The move comes as the country's health expenditure continues to rise, reaching 12.8% of GDP in 2024.

Germany's healthcare spending has grown steadily, from 11.7% of GDP in 2020 to 12.8% this year. This places it above countries like the Netherlands (10.5%) and Japan (11.5%), which achieve better health outcomes with lower costs. Warken has ruled out a capital income levy, calling it 'not the right approach' to funding gaps.

She instead plans to focus on reducing expenditure, using proposals from a government-appointed commission. The group is due to submit its recommendations by the end of March. Key areas under review include remuneration incentives, such as bonuses for doctors who take on referred patients.

Warken aims to stabilise contribution rates while addressing deficits in the statutory health insurance system. She has made clear that the current €500 billion budget must be managed more efficiently. Her goal is to ease the financial burden on citizens without raising additional taxes.

The minister's reforms will target inefficiencies across the healthcare sector. Every part of the system, from providers to administrators, will need to adjust. The final proposals from the commission are expected to shape the next steps in cost-cutting.