Germany's Greens propose 'sin taxes' to fund soaring healthcare costs for welfare recipients

BERLIN—Janosch Dahmen, the Green Party's health policy spokesperson in the Bundestag, has called for tax increases to cover the healthcare costs of citizens receiving Bürgergeld (unemployment benefits). In an interview with Politico, Dahmen argued that higher taxes on alcohol, tobacco, and sugar could generate the additional revenue needed to "ensure the affordability of health insurance."

Under his proposal, the costs currently borne by health insurers—and thus by policyholders—for Bürgergeld recipients would instead be funded from the federal budget. "It is right that such non-insurance-related benefits should be financed through tax revenues in the future," Dahmen emphasized. However, the Green politician rejected cuts to statutory health benefits, insisting that the focus should not be on patients. "We primarily have a spending problem, not a revenue problem," he said.

Deficit Exceeds Nine Billion Euros

For months, policymakers have debated how to address rising healthcare costs. Several health insurance executives have sounded the alarm, demanding higher flat-rate payments for the monthly insurance costs of Bürgergeld recipients—a group that includes an increasing number of foreigners. In 2025, insurers received just €133 per month for each benefits recipient.

Some insurers have already taken legal action over the issue. By the end of 2024, over 60 percent of families receiving Bürgergeld did not hold German citizenship. Without reforms, the deficit in the statutory health insurance system is projected to reach €12 billion this year.

A study by the health research institute IGES found that as early as 2022, the gap between contributions paid and expenditures for Bürgergeld recipients amounted to a shortfall of €9.2 billion.