German cabinet meeting finalizing 2027 health reform draft with 16.3 billion euro savings target.
German cabinet meeting finalizing 2027 health reform draft with 16.3 billion euro savings target.
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German government finalizes 2027 health reform draft with 16.3 billion euro savings target

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Following Chancellor Merz's announcement that the bill was practically ready, the German government finalized its health reform draft on April 28, targeting 16.3 billion euros in savings from 2027—down from an initial 19.6 billion—to address a 15.3 billion euro deficit at statutory health insurers. The Greens decry it as a burden on insured people and companies, while Health Minister Nina Warken calls it balanced. Cabinet approval is set for Wednesday.

The Federal Health Ministry completed the statutory health insurance reform draft on April 28, 2026, reducing the targeted savings to 16.3 billion euros for 2027 from the previously planned 19.6 billion. This aims to offset a 15.3 billion euro deficit. Key measures include cutting the federal subsidy from 14.5 billion to 12.5 billion euros annually until 2030, while introducing funding for health costs of Bürgergeld recipients starting at 250 million euros in 2027, with planned increases.

This follows Chancellor Friedrich Merz's statement the day prior that the bill was 'practically ready' for the cabinet vote on Wednesday, amid the 2027 budget discussions. Parliamentary Greens, led by health policy spokesman Janosch Dahmen, accuse the government of shifting burdens to contributors and companies while protecting civil servants and private insurers. Dahmen called it an 'expensive sleight of hand' that risks care quality.

Health Minister Nina Warken (CDU) defended the package on ZDF's heute-journal as 'a very balanced package' requiring contributions from hospitals, doctors, and pharma to close the 'billions hole.' SPD Labor Minister Bärbel Bas has coordinated to protect workers' rights. The draft heads to cabinet approval after departmental consultations.

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