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Germany’s bold healthcare overhaul targets funding gaps and digital transformation by 2026

A €10B+ deficit looms over Germany’s healthcare system—unless sweeping reforms succeed. From drug pricing to AI-driven records, here’s how the plan could change everything.

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2 min read
The image shows a poster with a flowchart depicting the different types of people who have been...
The image shows a poster with a flowchart depicting the different types of people who have been diagnosed with cancer. The text on the poster reads "Benefits and Services for Low-income Individuals". The flowchart is divided into sections, each representing a different type of health care provider, such as Medicare, Medicaid, and Social Security. Each section is further divided into subsections, with arrows connecting them to indicate the flow of information. The poster also includes a legend at the bottom that explains the meaning of each section.

Germany’s bold healthcare overhaul targets funding gaps and digital transformation by 2026

Federal Health Minister Nina Warken has unveiled a sweeping set of reforms aimed at modernising Germany’s healthcare system. The plans include major changes to financing, digital infrastructure, and crisis preparedness, with key legislation expected over the next two years. Officials warn that without action, the statutory health insurance system could face a deficit running into billions by 2027.

One of the first steps will be the Medical Devices Act, due in early 2023. This law aims to simplify regulations and introduce stricter quality controls for medical equipment. By mid-2023, a comprehensive drug pricing strategy will follow, addressing access and affordability of medicines.

A Digital Act, planned for summer 2023, will focus on upgrading digital processes, data management, and healthcare technologies. It will expand the electronic patient record (ePA) and encourage the use of data for research and quality improvements. Separately, a Health Security Act is in development to bolster the system’s resilience against future crises. Later in 2023, legislation for a primary care system will be introduced to help patients navigate services more efficiently. An Advanced Practice Nursing Act will also create a new master’s-level nursing profession, aiming to improve specialist care. Meanwhile, a long-term care reform seeks to cut bureaucracy, improve efficiency, and stabilise funding. The most far-reaching change, however, is the statutory health insurance financing reform, set for the end of 2023. This comes as the ministry projects a double-digit billion-euro shortfall in the system by 2027 if no action is taken. Additionally, a digital law to strengthen the telematics infrastructure is planned by summer 2026.

The reforms will roll out in stages, with most laws expected between 2023 and 2026. The changes target financial stability, digital upgrades, and better crisis response. If successful, they could reshape how healthcare is delivered and funded in Germany over the next decade.

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