"We have to stabilize here": Klingbeil promises tax money injection to health insurance companies

Following the new Health Minister's emergency appeal, Klingbeil pledged federal budget support for the deficit-ridden health and long-term care insurance system. However, the Finance Minister made it clear that the gaps could not be permanently plugged with taxpayers' money. He did not reveal how much the subsidy would be.

Federal Finance Minister Lars Klingbeil has announced "fundamental and bold" structural reforms to social security, but will initially support the cash-strapped health and long-term care insurance systems with funds from the federal budget. "We are aware that the situation in long-term care and health insurance is difficult, and we need to stabilize it," the SPD leader told the Redaktionsnetzwerk Deutschland (RND). "But we cannot simply fix the problems permanently with more and more taxpayer money," he warned.

The Vice Chancellor referred to the agreement in the coalition agreement, according to which the Christian Democratic Union (CDU/CSU) and the Red Party (SPD) would work "with experts to develop fundamental and bold structural reforms." Previously, Federal Health Minister Nina Warken had called for billions of euros for both insurance systems to improve their financial situation and prevent further premium rate increases. Both insurance branches are in the red.

Warken reminds of billions in federal deficits

The CDU politician pointed out that the federal government owes billions to both health and long-term care insurance, which, in part, are responsible for the gaps in the system, both in the form of uncovered contributions for recipients of the citizen's allowance and in non-insurance benefits from the coronavirus period. She estimated the shortfall for recipients of the citizen's allowance at ten billion euros, and the federal government's coronavirus debt at almost six billion euros. Klingbeil did not directly address her argument and did not reveal to the RND how much the promised federal subsidy would amount to.

Instead, the SPD leader emphasized that hard-working people should be able to rely on a strong welfare state. "That's why we should be a bit more creative than simply demanding that people work longer or that healthcare benefits be cut." At the same time, Klingbeil defended the proposal by Social Democratic Labor Minister Bärbel Bas to include civil servants in the statutory pension insurance system. "Personally, I also think we can talk about who pays into the pension fund and how much," the minister emphasized. Klingbeil added: "This is an important debate, and we need this openness." The Chancellery had already rejected the proposal, arguing that nothing about it was in the coalition agreement.