Relief for Merz as lawmakers back key health care savings bill

A controversial health care savings package passed in the lower house of the German parliament on Friday, aimed at easing mounting costs for the country's public health insurers and preventing further increases in contributions.

The legislation, put forward by Health Minister Nina Warken, seeks to curb health care spending from 2027 through a series of cost-cutting measures affecting doctors' practices, hospitals, pharmacies and the pharmaceutical industry.

Among the proposals are higher co-payments for prescription medicines and tighter rules governing the free co-insurance of spouses under Germany's statutory health insurance system.

The governing coalition of Chancellor Friedrich Merz's conservatives and the Social Democrats argues the measures are needed to stabilize the finances of the statutory health insurance system while sparing workers from steep contribution increases. 

The package is part of a wider range of reforms introduced by Merz's coalition in a bid to revive the struggling economy and ward off the threat from the far-right Alternative for Germany (AfD).

The bill secured 318 votes in favour, 284 against and four abstentions in the lower house, or Bundestag. It later received approval from the upper house, the Bundesrat. 

"Everyone involved in the health care system has a part to play, because everyone stands to benefit in the long term from sustainable funding," Warken told lawmakers on Friday.  

The situation facing public health insurers is dire and leaves no room for delay, she argued. "In future, we want to make do with the money we have and only pay for what is useful," Warken added.

Opposition parties were highly critical of the package. "There will be no stability in contributions, but rather hospital insolvencies, overburdened GPs and psychotherapists who have been let down," said Green parliamentary leader Britta Hasselmann.

Heidi Reichinnek from The Left added: “With this law, you are putting people’s lives at risk.” 

Two opposition lawmakers had sought to delay the vote on Thursday, arguing that parliament had insufficient time to scrutinize numerous last-minute amendments to the bill. 

But Germany's Constitutional Court rejected the emergency applications, clearing the way for Friday's vote on the last day of parliamentary business before the summer recess.