The German cabinet approved a comprehensive health reform on April 29, 2026, to stabilize the national healthcare system's finances [1].
This measure shifts more financial responsibility onto consumers and targets lifestyle-related health costs to prevent a systemic budget collapse. The government aims to achieve total savings of approximately 16.3 billion euros [3].
Under the new regulations, patients will face higher out-of-pocket costs for prescription medications. The minimum co-payment for these drugs will rise to 7.50 euros, while the maximum payment will be capped at 15 euros per pack [2].
To further generate revenue and discourage unhealthy habits, the reform introduces a new package of taxes targeting sugar, tobacco, and alcohol [1, 3]. These levies are designed to reduce the long-term burden on public health services by lowering the consumption of harmful substances [3].
Beyond consumer costs, the government is debating the financial responsibility for the insurance of individuals receiving Bürgergeld, the national basic income support [1]. This aspect of the reform focuses on how the state manages the healthcare costs of the unemployed.
Some officials have expressed caution regarding the timeline for implementing these sweeping changes. Thorsten Frei said the schedule is "extremely ambitious" [4].
“The minimum co-payment for these drugs will rise to 7.50 euros”
This reform signals a shift in the German social contract, moving away from heavily subsidized healthcare toward a model of shared cost. By combining direct price increases for medication with 'sin taxes' on sugar and tobacco, the government is attempting to simultaneously plug a massive budget hole and implement a public health strategy to reduce chronic disease prevalence.
