Luxembourg’s Health Insurance Deficit Deepens, Government Plans Measures to Contain Costs

Luxembourg’s health and maternity insurance system faces a growing financial deficit, prompting the government and social partners to seek urgent cost-control measures. Following the quadripartite meeting held in Strassen, Minister of Health and Social Security Martine Deprez (CSV) confirmed that the deficit is projected to reach €118.6 million this year, compared to €25.8 million in 2024, and could exceed €200 million in 2026.

Deprez acknowledged that “the ageing of the population is a fact”, warning that the financing of health and maternity insurance must be regularly reassessed to ensure sustainability.

To limit the growing shortfall, the quadripartite agreed on a series of spending containment measures, including adjustments in physiotherapy treatment for long-term illnesses and the creation of a strategic committee to ensure that healthcare services are provided according to actual patient needs. The minister noted that in some cases, services are continuing longer than necessary, driving up costs.

The State’s financial contribution will also increase significantly. After providing €20 million annually in recent years, the government will now allocate €59 million per year to the health and maternity insurance fund. However, no increase in employee or employer contributions is planned for now.

Still, the minister warned that an increase in 2027 may be inevitable if the economy does not recover, as the reserve fund has fallen from €936 million to €817 million, approaching the critical threshold of 10% of total expenditures.

Meanwhile, tensions persist between healthcare actors. The Association of Physicians and Dentists (AMMD) has announced its intention to terminate its agreement with the National Health Fund (CNS), citing growing dissatisfaction.

According to Chris Roller, president of the AMMD, the current arrangement is “a dictation” that restricts professionals, with the CNS “dictating tariffs” that fail to keep pace with technological advances. He stated that doctors remain committed to an agreement that serves patients’ interests, but under current conditions, “this is no longer the case.”

Once the AMMD officially terminates the agreement, it will remain in force for one year while negotiations for a new one take place — ensuring no immediate impact on insured patients.

Read More : Luxembourg: health insurance deficit reaches €118.6 million - Bottom line

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