Facing a projected shortfall of 11 billion euros for Germany’s health care system in 2011, Chancellor Angela Merkel’s government agreed on Tuesday to increase contributions. But the plan is a far cry from radical reform, leading to calls for the country’s health minister to resign.
Germany’s government has been arguing for months about how best to reform the country’s chronically indebted health care system. On Tuesday, leaders of Chancellor Angela Merkel’s coalition finally reach agreement.
The deal, presented by Health Minister Philipp Rösler — from Merkel’s junior coalition partner, the Free Democrats — calls for contributions to rise from 14.9 percent of employee income to 15.5. The contributions remain split 50-50 between workers and employers. In addition, additional charges demanded by insurers to eliminate shortfalls will no longer be capped at one percent of employee salaries.
“The expected deficit of €11 billion in 2011 will be cancelled out,” Rösler told reporters on Tuesday. He said he was optimistic that the new contribution regime would result in lasting stability for Germany’s health care finances, but added that the system for how contributions are made must still be reformed.
Rising costs have dogged Germany’s health care system for years, and multi-billion euro deficits have become the norm. As recently as 2006, Merkel — then in coalition with the center-left Social Democrats — proudly announced what she called “far reaching reform.
Remind me again how ObamaCare is going to reduce our debt.
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