Dozens of health insurance companies have made risky investments, and the resulting damage could now amount to up to 1.1 billion euros. While insured people are burdened with premium increases and benefit cuts, their premium money was speculated on the real estate market.

Statutory health insurance companies are under massive financial pressure. In the first half of 2026, theirs roseexpenditureon average significantly stronger than the contribution income. A financing gap in the double-digit billion range is therefore expected for 2027.

The federal government's answer is: save. The health reform is intended to limit health insurance spending. Among other things, savings in the healthcare system and financial relief are planned, which are intended to stabilize the contribution rate. At the same time, there are warnings about an increasing burden on patients and insured persons.

And in this situation of all places, the true extent of the health insurance companies' losses due to failed investments becomes known. Last week the federal government announced that the losses wereseveral hundred millionEuro trades. More than two months ago, research by NDR, among others, revealed that some health insurance companies had gambled away on risky real estate investments. At that time there was talk of at least 170 million euros. Now, for the first time, the federal government is naming a significantly larger potential amount of damage.

1.1 billion euros in risky investments

According to the federal government, health insurance companies have invested a total of around 1.1 billion euros in so-called “non-performing investments”. At least 400 million euros are already considered lost. The responsible supervisory authority, the Federal Office for Social Security (BAS), sees the possibility of further losses. It is possible that the incorrect investments will lead to further financial difficulties for the health insurance companies. Paula Piechotta (Greens) explained in response to a request fromZDFheutethat there is a risk that the insured would have to pay “unnecessarily high health insurance contributions”.

Investments related to real estate transactions and funds are among the reasons for the high losses. Funds pool the money of various investors and invest it in real estate, loans or other securities. With the aim of achieving returns, but also with the risk of losing some of the money invested.

The billion-dollar losses were primarily caused by risky real estate deals. As can be seen from the answer to a small question from the Greens in the Bundestag, federal and state authorities are currently investigating how the bad investments could come about.

So far we know that twelve health insurance companies invested around 900 million euros in promissory note loans and eleven health insurance companies invested a total of 200 million euros in bearer bonds, all of which are considered “non-performing”. Underperforming means that the investment falls significantly short of expected returns, with the possibility of a total loss.

Proceedings against financial companies

What is particularly explosive is the participation of several health insurance companies and associations of statutory health insurance physicians in the now inVerius fund that got into trouble. A total of five institutions have filed a lawsuit against the financial company behind the fund. It was argued before the Frankfurt Regional Court that the health insurance companies assumed that the investment was safe and that there was no risk of loss. The statement of claim speaks of “personal meetings”, “various telephone conferences” and documents in which assurances were given that the investments were safe and in accordance with the investment regulations of the Social Security Code.

At least 220 million euros are said to have flowed into this fund alone. The Verius fund is currently in danger of becoming a total loss. The also defendant “Hauck Aufhäuser Fund Services S.A.” firmly rejected the accusation of deception. An official sales prospectus, which is available to NDR and WDR, specifically points out the risks. In total, the document lists exactly 27 risks, 19 of which are “medium” and three of which are “high”. Only five were considered “minor.”

In addition to the fund, investments were also made in promissory note loans. Several health insurance companies and associations of statutory health insurance physicians had granted loans, some worth millions, to real estate developers. In return, there is only little collateral. During its investigation, the KVWL found, for example, investments in which a property that was said to have been worth one million euros was given a loan of 30 million euros.

Most health insurance companies and health insurers have not yet commented on the billion-dollar loss. The Social Code obliges health insurance companies and insurance companies on paper to invest their money “in such a way that loss appears to be impossible”.

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The business behind health insurance and insurance

The gambled away funds come from the statutory healthcare system. These are contributions from workers that are actually intended for the medical care of the insured. Special legal requirements apply to health insurance companies when investing these funds - but investing them yourself is permitted. However, audits in recent weeks revealed that not all health insurance companies had apparently implemented the applicable investment guidelines.

Health insurance companies manage the contributions of their insured persons and partially invest reserves in the financial market in order to generate profits - the payers do not benefit from this, while they always bear the risk of possible losses.

The actual total damage to the health system will probably be even greater than the amounts previously quoted by the federal government. Of the 93 health insurance companies operating in Germany, the BAS only assesses 58. Regional health insurance companies are not supervised by the federal government.

Oliver Blatt, the chairman of the health insurance association, said that the financial gap in the health insurance companies could be closed in the coming year if all austerity measures were “fully implemented”. There would be “not a millimeter of leeway.”

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When social security becomes an investment product

The case is also explosive because at the same time the federal governmentfunded pension provisionwant to expand. With the reform of state-funded private pension provision, from 2027 onwards, in addition to classic guaranteed products, a state-funded pension deposit without a guarantee will be possible.

Among other things, funds and other asset classes suitable for small investors can be used. The Federal Government's express aim is to attract more people to private provision and the capital market through higher return opportunities. And similar to the bad investment made by health insurance companies, there is always the risk of total loss.

At the same time, the federal government is relying on a different part of the same logic for statutory health insurance: in the future, expenditure should be more closely aligned with income. The Statutory Health Insurance Contribution Rate Stabilization Act passed in July 2026 is expected to save almost 19 billion euros in 2027 alone.

To this end, among other things, compensation increases in the healthcare system are limited, administrative costs are capped and other healthcare expenses are reduced. Insured persons are also charged directly. For example, with the subsidy for dentures. This drops from 60 to 50 percent. Additional additional payments will also be increased.

The federal government describes this as stabilizing contributions. In fact, a key part of the reform is to adjust spending to an already limited revenue trend. The GKV's financial problem is dealt with primarily through cost containment. The Health Finance Commission initially calculated a financing gap of around 15 billion euros for 2027. Without countermeasures, it could grow to around 40 billion euros by 2030.

Introduction to capital markets

With the planned early start pension, funded provision should begin with children. From 2027, ten euros per month from the federal budget will flow into a funded retirement savings account for children aged six and over. The federal government wants to introduce children to capital market investments and their potential returns at an early age.

This increases the importance of the question of who is responsible for thisRisks with Zfailure. With pay-as-you-go social insurance, current contributions are used directly for ongoing benefits. In funded models, assets are accumulated and invested. And is only one economic crisis away from destroying thousands of lives through total loss. In the end, only the fund providers benefit from such financial constructs. The case of the health insurance companies shows that institutional investors do not automatically handle our money safely under government supervision.

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Not an isolated problem

Another case from last year shows that such risks are not limited to health insurance companies: the pension fund of the Berlin Dental Association.

Risky investments there led to significant losses. Auditors found a significant undervaluation of capital investments. A supply gap of more than one billion euros is now feared. Claims for damages are also being made against the former director of the pension fund. The Berlin Public Prosecutor's Office is examining initial suspicions. Investigations are currently underway18 accused.

A similar problem occurs with the stateRetirement and survivors' pensions. Here, too, money is deposited over years in order to finance claims later. However, if this money flows into risky investments, the question of returns quickly becomes a question of social security. The money is intended to provide security for old age - but in return it is exposed to the risk of the capital market.

The higher the expected return, the greater the risks taken. Profits are used as an argument for capital investments, while losses raise the question of who will pay the bill. In the worst case, the costs end up not with those who decided on the investment, but with the contributors.

It is precisely at this point that the case connects with the risky investments of health insurance companies. In both cases, money intended for social security was tied up in financial investments. The member of the BundestagInes Schwerdtner(The Left) therefore calls for reliable handling of the contributions of the insured: “Anyone who works and pays in for decades must be able to rely on the fact that their money is being used for health and a secure pension.”

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