Germany is facing a significant increase in health insurance contributions, with rates expected to rise to unprecedented levels by 2025. The surge is attributed to the government's failure to fulfill a coalition agreement to adequately fund health insurance for citizens receiving social benefits.

Currently, the state contributes only 119 euros per month for each of the 5.6 million beneficiaries, a figure that falls short of covering actual costs.

This shortfall has led to a projected 0.8 percentage point increase in health insurance contributions next year, marking the steepest rise since 1975. Health insurance providers argue that if the government had honored its commitment, the increase could have been limited to 0.2 or 0.3 percentage points.

The financial burden is shared equally between employees and employers, with 17.1% of gross wages expected to go towards statutory health insurance.

Calls for reform are growing, as stakeholders urge the government to increase its financial support to stabilize the system and prevent further financial strain on insured individuals.