Skyrocketing Expenses: Techniker-Kasse Outpaces Previous Spending Records in North Rhine-Westphalia
In a significant development, the Techniker Krankenkasse (TK), the largest health insurance company in North Rhine-Westphalia (NRW), has reported spending more on the treatment and therapy of its insured persons in 2024 than ever before, totalling 10.7 billion euros. This marks the first time in TK's history that its expenses in NRW have exceeded ten billion euros.
According to Barbara Steffens, head of TK in NRW, this cost development is unprecedented in the past decade. The primary drivers of this increase are the expenses for sick pay, rehabilitation, and prevention services, which amount to around 2.5 billion euros, and dental services, around 720 million euros. Notably, expensive new medications, particularly in cancer therapy, have contributed significantly to these costs. In 2024, TK spent more than 700 euros per insured person on medication, representing a 10.5 percent increase from the previous year.
Hospital treatment remains the largest cost block for TK in NRW, with expenditure of 3.3 billion euros in 2024. TK spent almost two billion euros on treatment by general practitioners in NRW, with an increase of seven percent compared to 2023.
Jens Baas, CEO of TK, expects a contribution rate increase of at least 0.2 percentage points for all health insurers, which could potentially rise to 0.4 to 0.5 points. However, Baas did not provide specific figures regarding potential increases in contributions for his own health insurance company, TK.
Experts predict that hospital costs in NRW will decrease in the long term due to the clinic reform launched by NRW Health Minister Karl-Josef Laumann (CDU). This reform aims to have hospitals specialize more and assign fewer treatments in certain lucrative fields than before.
Germany can anticipate ongoing increases in health insurance premiums beyond 2025, likely in the range of 2–3% annually based on historical data, but potentially higher if medical inflation accelerates. Private insurance holders should especially prepare for increases, as their premiums do not adjust automatically with income and medical cost increases. No precise official projections for the percentage increase beyond 2025 in German health insurance were found, but the general expectation aligns with continued moderate to significant increases.
In the U.S., medical cost trend projections for 2026 remain high—8.5% for group plans and 7.5% for individual plans—due to factors such as AI adoption increasing utilization and expiration of subsidies raising premiums. While these figures are U.S.-specific, similar global trends in healthcare innovation and inflation likely influence Germany as well.
Baas has stated that the federal government must find a solution for new, extremely high-priced medications to prevent costs from continuing to explode, and should oblige manufacturers to grant higher discounts to statutory health insurance companies again. This could help mitigate the rising costs in the future.
- The rising costs in health insurance, as shown by TK's spending of 10.7 billion euros in 2024, highlight the significance of workplace-wellness initiatives.
- Science has an essential role in addressing the increased costs, particularly in the development of more affordable treatments for chronic diseases like cancer.
- Quality sleep is crucial for maintaining good health and mental well-being, factors that impact overall health-and-wellness expenses.
- The increased spending on therapy and rehabilitation services underscores the importance of fitness-and-exercise in managing medical-conditions and contributing to workplace-wellness.
- Eye-health, hearing, and skin-conditions are among the many health aspects that TK has to cover, adding to the total expenses.
- Autoimmune-disorders, mental-health, and mens-health are other critical areas of focus for the health-and-wellness industry.
- Skin-care products and therapies are increasingly important for managing various skin-conditions and promoting skin-health.
- Nutrition plays a vital role in maintaining digestive-health, another significant area of expense for health insurance companies.
- Respiratory-conditions, cardiovascular-health, and neurological-disorders also contribute significantly to the rising health costs.
- The aging population is a significant factor contributing to the increasing burden on the healthcare system and health insurance companies.
- Womens-health and the health of future generations through parenting are vital areas of focus for ongoing health investments.
- Weight-management programs could help reduce the burden on health insurance companies by improving overall health and reducing the risk of chronic diseases.
- In the midst of these cost increases, cybersecurity measures become increasingly important to protect sensitive health data and information.
- Lifestyle choices, such as smoking and alcohol consumption, also impact health outcomes and contribute to health costs.
- Fashion-and-beauty, food-and-drink, and personal-finance are interconnected with health and wellness, influencing overall health expenses.
- The finance industry plays a key role in providing wealth-management solutions for those facing high medical costs and need help managing their savings.
- The home-and-garden sector can contribute to overall health and wellness by promoting healthy living spaces.
- The business industry must address the rising costs of health insurance for both employers and employees.
- Personal-finance strategies, such as budgeting and saving, can help individuals prepare for potential increases in health insurance premiums.
- Banking-and-insurance companies have a role to play in providing innovative solutions to manage the rising costs of health insurance.
- The use of gadgets, such as wearable devices, can help individuals monitor their health and take preventive measures.
- Data-and-cloud-computing technologies are essential for managing and analyzing health data to improve health outcomes and reduce costs.
- Artificial-Intelligence has the potential to revolutionize the healthcare industry, improving efficiency and reducing costs.
- Relationships with loved ones, including pets, can have a positive impact on mental-health and overall well-being, factors that impact health costs.
- Travel, whether for leisure or work, can have an impact on health, both positively and negatively, and thus on health-insurance costs.
- The maintenance and repair of cars can impact one's health, particularly if exposure to harmful substances occurs.
- Books and learning resources can help individuals better understand their health conditions and manage their health more effectively.
- Shopping for health food and wellness products, and staying informed through social-media and entertainment platforms about health and wellness trends, can contribute to the overall health and well-being of individuals.
