Berlin, April 29, 2026 German Cabinet approves healthcare reform to cap contributions The German government has approved a sweeping healthcare reform package aimed at capping health insurance contributions at 14.6 percent while imposing new burdens across the sector.
Largest Healthcare Reform in Decades
The Bundeskabinett on Wednesday passed what Chancellor Friedrich Merz called "the largest reform in the healthcare sector in the past 20 years." The measures will affect all parts of the system, including pharmaceutical companies, physicians, health insurers, and patients themselves.
The central goal of the Gesundheits-Sparpaket (healthcare savings package) is to stabilize contribution rates for statutory health insurance (GKV) at their current level of 14.6 percent. This comes amid rising healthcare costs and demographic challenges facing Germany's aging population.
Nina Warken, a prominent CDU lawmaker involved in the negotiations, emphasized the need for structural changes. "We cannot keep pushing rising costs onto future generations," she told reporters in Berlin. The reform follows months of negotiations between coalition partners and stakeholders.
Sector-Wide Impact and New Burdens
The package introduces cost-saving measures across multiple healthcare sectors. Pharmaceutical companies will face stricter pricing rules, while doctors and hospitals must accept efficiency targets. Health insurers will be required to implement new administrative savings.