Ahead of the next quadripartite in October, unions and employers remain divided over how to tackle the growing health fund deficit, with unions demanding fairer contributions from higher earners and protection of benefits, while employers firmly oppose any rise in contributions.
Last year, the National Health Fund (CNS) recorded a deficit of €25 million. This shortfall is expected to widen further, with reserves set to dwindle in the near future. These were the conclusions drawn after the spring quadripartite meeting. Regular updates are made by the relevant actors in working groups.
On Friday, a preparatory meeting was held ahead of the next quadripartite meeting scheduled for 13 October. Discussions focused on financial measures to strengthen the health insurance system, as well as the issue of absenteeism.
To curb spending, the business association (UEL) and trade unions had already drafted a paper in spring, highlighting that the CNS was financing services with little relevance to health policy. The unions argued there was little political will to change this.
LCGB in favour of contribution hikes
For the Luxembourg Confederation of Christian Trade Unions (LCGB), the red lines are clear: insured individuals should not be made to pay more, and benefits should not be reduced. Christophe Knebeler, LCGB committee member of social policy, added that commitments were also needed on reimbursements for glasses and dental care.
Employers remain opposed to contribution hikes, while the LCGB insists on lifting the ceiling on contributions.
Knebeler explained that contributions are currently capped at five times the minimum wage, but the union believes this ceiling should be removed. He said calculations for 2024 showed that removing it could generate an additional €300 million for the CNS, with the burden falling on higher earners.
The government is aiming to put together a comprehensive package swiftly. Knebeler, however, expressed doubt that concrete solutions would emerge at the next quadripartite meeting.
He noted that unions were not yet at the point of saying solutions would be ready, and would continue to take steps to obtain answers and concessions from the government. For now, he said, the feeling was that discussions were still ongoing, and if no progress was made the unions would need to reassess their position, making it difficult to foresee a final agreement.
Employers warn against raising contributions
Employers described the meeting as constructive, noting that social dialogue had worked and various options had been discussed.
Returning to the joint paper produced in spring, UEL director Marc Wagener underlined that the state also had a responsibility to step in and cover certain costs that were not health-related. He said the two ministers present had shown some openness, though all sides – unions, employers, and government – would now need to consult their respective bodies.
However, Wagener also drew a red line on the issue of contribution increases. After the recent pension measures, Wagener argued it would be harmful if health insurance contributions were also raised. He stressed it would send a very negative signal for state finances, competitiveness, attractiveness, and the workforce, particularly given the difficult economic and labour market situation.
