Cologne - According to the Institute of German Economy (IW) Cologne, the return to full equal contribution financing of the statutory health insurance (GKV) is not promising solution. The associated hope of sustainable relief for the contributors turns out to be mistake, the economists criticized after an analysis of current reform proposals.
Because the additional contribution that had previously only been paid by the members would be abolished and half on the previous contribution rate share of employees and employers added. According to it, the employees must ultimately generate all labor costs, including the employer's social security contributions, with their performance, so that their employment is sustainably secured.
Dividing the previous additional contribution by half will burden employers in the first round by an additional six billion euros per year. For retirees, the statutory pension insurance has to pay contribution subsidy that is 1.4 billion euros higher. In return, the private households of employees and pensioners are relieved of 7.4 billion euros.
"Nevertheless, the measure is not suitable as socio-political instrument, because the distribution of the net income of employees subject to social insurance can hardly be changed" the scientists said. Both the Gini coefficient and the ratio of net income between the upper and lower tenth (90/10 ratio) only drop by 0.2 percent. In return, however, there was threat of adjustment reactions that would cost society dearly. According to the IW, companies will try to compensate for the higher labor costs in the short term with rising goods prices. However, this worsens their competitiveness. As result, exports would grow more slowly and employment would suffer.