The Statutory Health Insurance Contribution Rate Stabilization Act , passed by the Bundestag on July 10, 2026, will bring about significant financial cuts and structural adjustments starting in 2027. The goal of the reform package is to offset the billions-in deficit of the statutory health insurance funds and to keep contribution rates stable.
What if you could more than offset the benefit cuts and additional burdens on your employees with a customized health plan?
This is exactly where supplemental employer-sponsored health insurance (bKV) comes in. It expands existing health insurance coverage to include additional health benefits that the employer pays for on behalf of its employees. It is a supplemental health insurance plan that complements statutory health insurance precisely in those areas where employees and employers see real added value.
An overview of the key changes in the reform.
The 2027 healthcare reform must be viewed as a comprehensive cost-cutting package for the statutory health insurance system. This means that, for some insured individuals and employers, costs will rise significantly. Higher copayments and premiums will be accompanied by reduced benefits. The following changes have been finalized:
| Area | New Rules Effective in 2027/2028 | Target Audience |
|---|---|---|
| Medicines and Medical Supplies | The copayment will increase from the current €5 to €10 to €7.50 to €15 per package. | People with statutory health insurance |
| Therapies (Physical Therapy, Occupational Therapy, Speech Therapy) | The prescription fee will increase from 10 to 15 €. The percentage copayment for treatment costs will remain unchanged. | People with statutory health insurance |
| Hospital stay | The daily copayment will increase from €10 to €15, and will continue to be limited to 28 days per year. | People with statutory health insurance |
| Dental prosthetics | The fixed subsidy for standard care will be reduced from 60 to 50 percent. With a bonus booklet: 60 percent instead of 70 percent after five years, and 65 percent instead of 75 percent after ten years. The hardship provision for low-income individuals will remain in place. | People with statutory health insurance |
| Homeopathy and Anthroposophy | Both are completely excluded from reimbursement—on the grounds of a lack of scientific evidence. | People with statutory health insurance |
| Non-Contributory Family Insurance | Starting in 2028, a surcharge of 2.5 percent of income subject to contributions will be levied for co-insured partners. The following remain exempt from contributions: children; parents with children under the age of twelve; parents of children with disabilities; family caregivers; partners who have reached the standard retirement age; and spouses and domestic partners with health impairments. | Spouses and Domestic Partners |
| Contribution Assessment Ceiling | In 2027, there will be a one-time increase of 300 € per month, in addition to the regular adjustment. This corresponds to an additional monthly cost of approximately 26 € for the 50% share. | High-income earners, employers |
| Income Threshold for Mandatory Insurance | The premium has been raised by an extraordinary €3,600 per year. This makes it more difficult to switch to private health insurance. | Employees, High Earners |
| Non-wage labor costs | Due to the increase in the contribution assessment ceiling, employer contributions for higher-earning employees will rise. | Employer |
| Partial Work Disability and Partial Sick Pay (New) | In the future, doctors will be able to determine three levels of work capacity: 25, 50, or 75 percent. This is possible only in medically appropriate cases and requires the consent of both the employee and the employer. | Employers, Human Resources Departments |
| Sick Pay | The benefit amount (70 percent of gross income) and the benefit period (78 weeks within a three-year period) remain unchanged. | People with statutory health insurance |
| Skin Cancer Screening | It will not be abolished. The Joint Federal Committee is reviewing the transition to risk-based screening; a resolution on the change is expected by the end of 2027. | People with statutory health insurance |
| Tax on sugar-sweetened beverages | To be introduced starting in 2027 — to strengthen prevention efforts and stabilize health insurance fund finances. | All consumers |
| Sick Leave and the Obligation to Report Sickness | Not part of this law: The planned requirement to submit a certificate of incapacity for work starting on the first day of illness and the elimination of sick leave certificates issued by telephone are decisions made by the coalition committee and are not yet law. | Employees, Human Resources Departments |
Sources:
- Federal Ministry of Health: Questions and Answers on the Statutory Health Insurance Premium Rate Stabilization Act, as of July 10, 2026
- Act on the Stabilization of Contribution Rates in Statutory Health Insurance, published in the Federal Law Gazette on July 29, 2026, in effect since July 30, 2026
Why Now Is the Right Time for Supplementary Health Insurance!
“Anyone who manages their company and staff responsibly must ask themselves: What does it cost their own company not to have a supplementary health insurance plan?” (Tim Bütecke, owner and CEO of the HFH Group, Hamburg).
Many companies are currently reviewing their HR and benefits strategies—not least to boost their workforce’s motivation, retention, and willingness to perform!
Investing in the health of all employees is one of the most effective and efficient measures employers can provide for their employees. When professionally planned and implemented, a supplementary health insurance plan delivers significant added value for both employees and employers, as the following benefits illustrate:
bKV Health Benefits for Employees (Selected Benefits)
- Specialist Appointment Service: Waiting times for specialist appointments are likely to increase significantly as a result of the healthcare reform, particularly for those with statutory health insurance (GKV). The bottom line is that this will result in longer absences from work and higher costs. The supplementary health insurance (bKV) offers a specialist appointment service that is not only highly valued but has also been proven to reduce absences due to illness.
- Preventive Care: Regular preventive care is essential for preventing serious illnesses or detecting and treating them at an early stage. Preventive care services are among the core benefits covered by supplemental health insurance (bKV).
- Medications and medical supplies: Copayments for prescriptions may be covered by the bKV.
- Medical Treatments and Assistive Devices: Medical treatments include, among other things, physical therapy, occupational therapy, and speech therapy. Massages, in particular, are very popular with bKV members. Assistive devices, however, also include blood pressure monitors, bandages, and much more.
- Alternative Medicine Services: Whether it’s osteopathy, acupuncture, or homeopathy—subsidies are available for treatment by alternative practitioners. Alternative therapies are generally not covered by statutory health insurance.
- Dental Care: One to two professional dental cleanings per year are recommended. The bKV provides subsidies for dental cleanings and treatments, as well as for dental prosthetics.
These and an additional 300 health benefits are available to all employees on an individual basis, based on their annual salary and budget tier. And companies that have implemented a supplementary health insurance plan almost universally confirm that investing in workplace health significantly and sustainably improves motivation, loyalty, and satisfaction.
Benefits of Supplementary Health Insurance for Employers
It’s no secret that motivated and high-performing teams are essential for sustainable business success! Therefore, entrepreneurs and/or CEOs are responsible not only for results, but also for the well-being of their teams! The following benefits clearly illustrate the potential of investing in workplace wellness:
- Care & Appreciation in Challenging Times: The bKV serves as a psychological message: “Your health is important to us! We invest in your health and plan the future of our company together with you. There’s hardly a better way to express responsibility and appreciation.
- Greater Loyalty & Motivation: With the bKV, employers express their appreciation to their employees in a way that truly resonates and has been proven to foster internal loyalty. It boosts internal motivation and strengthens the company’s image, while also enhancing its appeal as an employer to the outside world.
- Reducing Absenteeism Due to Illness: Through preventive care budgets and faster access to (private) medical care, employees get sick less often (prevention) and recover more quickly when they do fall ill. This permanently reduces high absenteeism rates and costs and increases overall productivity!
- High Return on Investment (ROI): Supplementary health insurance (bKV) is classified as a non-cash benefit and is exempt from taxes and social security contributions up to 50.00 EUR per month. Practical experience shows that a well-planned supplementary health insurance plan offers multiple financial benefits. For example, it provides a far higher net benefit compared to a salary increase. And if employee absenteeism is reduced by just one day per employee per year, the supplementary health insurance plan pays for itself entirely. From a financial perspective, there is hardly any other investment in the context of performance-based compensation that offers such a high return!
Conclusion
Take advantage of the healthcare reform now as a way to boost health and motivation in your company! Supplementary health insurance is not a social benefit or just another cost factor. It is an indispensable investment in the long-term health and satisfaction of all employees—and thus a key driver of your future competitive edge and business success! We would be delighted to support you on this journey.
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As a full-service provider specializing in workplace health management and supplementary health insurance (bKV), FAKTOR MENSCH supports its clients from the initial consultation through successful implementation and ongoing support. For 26 years now—based in Hamburg, serving all of Germany. Please feel free to contact us.
Sources:
https://www.hansemerkur.de/gesundheit-vorsorge/gesundheitsreform
Note:
FAKTOR MENSCH researched and prepared the content of this blog post with the utmost care. The information is intended as a guide and is meant to provide readers with an initial overview of the healthcare reform. We ask for your understanding that we cannot, however, guarantee the accuracy, completeness, or timeliness of the information provided.
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