KBV Chief Proposes Increased Tobacco and Alcohol Taxes to Fund German Healthcare

The head of the National Association of Statutory Health Insurance Physicians (KBV), Andreas Gassen, has proposed an increase in tobacco and alcohol taxes as a means to generate dedicated funding for Germany’s healthcare system. Gassen suggested raising taxes by an additional €2 per pack of cigarettes, a measure expected to raise approximately €7 billion annually. He emphasized that such earmarked funds would strengthen healthcare financing and act as a deterrent to youth smoking, given that tobacco use remains a leading cause of lung cancer, heart attacks, and strokes.

In addition to this tax proposal, Gassen urged Federal Health Minister Warken to remove homeopathy from reimbursed healthcare services, highlighting the lack of scientific evidence supporting its efficacy. Eliminating homeopathy could save around €50 million annually. Furthermore, Gassen criticized continued funding for digital health apps, citing significant yearly expenses without proportionate benefit. A broader healthcare savings package totaling €2 billion is slated for implementation in January.

These measures collectively aim to enhance the sustainability of Germany’s healthcare system by targeting both increased revenue and cost-saving reforms. Gassen’s proposals align with public health goals of reducing tobacco consumption and reallocating healthcare funds to evidence-based care, reflecting ongoing debates about healthcare financing and service coverage in Germany.