Delayed Health Insurance Subsidies Spark Concern for Civil Servants

Civil servants in Mecklenburg-Western Pomerania are still waiting for the implementation of promised health insurance subsidies, causing growing frustration and raising concerns about the region’s competitiveness in attracting public sector employees.The delay in introducing a flat-rate allowance for those voluntarily insured in the statutory health insurance (GKV) is seen as a significant disadvantage compared to other German states.

DGB Nord Urges Government Action

Laura Pooth, Chair of DGB Nord, has strongly criticized the state government’s inaction, emphasizing the need for civil servants to have the freedom to choose between statutory and private health insurance without financial disadvantages. Pooth stated:

The state government has announced in its coalition agreement that it has not happened so far… This is an unnecessary burden for the employees.
Laura Pooth, Chair of DGB nord

Pooth’s remarks came in response to the state government’s answer to a query from MPs Constanze Oehlrich, Group Bündnis 90/Die Grünen, highlighting the growing pressure on the government to fulfill its promise.

Competitive Disadvantage and Attractiveness of Public Service

The absence of a flat-rate subsidy puts Mecklenburg-Western Pomerania at a competitive disadvantage in attracting and retaining skilled professionals, especially in high-demand fields such as teaching and technical professions. According to recent data,states offering such subsidies have seen increased interest in public sector jobs. Pooth emphasized this point:

All northern German countries and almost all East German countries have now made regulations for a flat-rate subsidy for the costs of insurance in statutory health insurance for civil servants… Mecklenburg-Western Pomerania is at risk of a significant competitive disadvantage.
laura Pooth, Chair of DGB Nord

Currently, over 1,000 civil servants, officials, and pension recipients voluntarily insured in the GKV in Mecklenburg-Western Pomerania bear the full cost of their health insurance, including both employer and employee contributions. This financial burden is seen as a deterrent, especially for those in lower pay grades.

Hamburg model and Long-Term Cost Neutrality

The state government has cited short-term additional costs as a reason for the delay. However, proponents of the subsidy point to the example of Hamburg, where a similar model has been implemented. The Hamburg senate anticipates long-term cost neutrality due to the relief provided to households,particularly those receiving care benefits. This suggests that the initial investment could be offset by long-term savings.

Background: Health Insurance for Civil Servants in Germany

In Germany, civil servants have the option of choosing between private health insurance (PKV) and voluntary statutory health insurance (GKV). While PKV frequently enough offers more comprehensive coverage, GKV provides a safety net and is generally more affordable for lower-income individuals. In several other German states, including Lower Saxony, Saxony, hamburg, baden-Württemberg, Bremen, Berlin, Brandenburg, Thuringia, and Schleswig-Holstein, civil servants voluntarily insured in the GKV receive a subsidy covering half of their health insurance costs. The introduction of a similar flat-rate aid in Mecklenburg-Western Pomerania, as promised in the coalition agreement, would align the state with these progressive policies and enhance the attractiveness of its public service.