Controversial Proposal

States Want a Share of the “Pensioners’ Billion”

Ludwig and Lercher want the funds to come from the same source that pays for hospitals: the federal states.(Bild: JAKOB LANGWIESER/APA/picturedesk.com, Dietmar Matthis, Christian Jauschowetz)

A seemingly innocuous resolution from the Conference of State Governors packs a punch. State leaders now want more than 400 million euros of pensioners’ contributions for themselves—money that the union has actually long since earmarked …

The item nearly went unnoticed at the Conference of State Governors. It sounds like bureaucratic jargon, but it’s a declaration of war. Unanimously, the nine states are calling on the federal government to “make the additional revenue generated by the increase in health insurance premiums for retirees available to the state health funds on a pro-rata basis to fulfill their responsibilities.”

Furthermore, the federal government should adhere to the “established financing system.” Translated, that means: You’ve bypassed us; now we want our money. The timing is no coincidence. The health care reform is set to begin in 2027—a package of minimal compromises, such as the specialist medical centers. Just before that, the states are now putting their demands on the table.

Background: Starting in June 2025, 6 percent—instead of 5.1 percent—will be deducted from each pension for health insurance. This will generate more than 1.1 billion euros per year. Nearly half goes into the health care reform fund; the rest is retained by Social Security. The states must maintain their expensive hospitals and yet come away empty-handed.

414 million per year for the nine states
In 2025 and 2026, the states will thus have lost up to 627 million euros. Starting in 2027, they want 414 million annually: Vienna 105.7, Upper Austria 72.3, Styria 60.2, and Lower Austria 59.5 million. “Healthcare takes place locally, in our hospitals, doctors’ offices, and outpatient clinics,” argues Vienna’s Mayor Michael Ludwig (SPÖ). That is where it is decided “whether people can get an appointment quickly.” Vienna will “invest every euro in better care.”

Support comes from Styrian SPÖ leader Max Lercher, who is not afraid to address sensitive issues in health policy: “We must do justice to these high contributions. The money must not be allowed to seep away into bureaucratic structures. It belongs, without exception, to local medical care and the staff—so that our hospitals are strengthened, the burden on employees is eased, and people are treated quickly in an emergency. This isn’t about turf wars within the system, but about the most important promise to the public: that in the event of illness, people will receive prompt and quality care.”

Red Against Red
The demand is particularly contentious for the SPÖ, as the money would primarily be taken away from their own members. The ÖGK would have to hand over the millions, and the union calls the shots there. For the ÖGB, the “pensioners’ billion” is the lifeline against the health insurance fund deficit.

One insider calls the money a buffer used to plug the well-known large holes. Just this Saturday, it was revealed that the ÖGK’s current financial forecast shows a deficit of 72.1 million euros for 2026—in August, the figure was still 151.5 million. Health insurance fund chief Peter McDonald sees this as the result of “consistent work.”

Dedicated Line to Be Cut
The union has no plans to transfer about one-third of this amount to the states. However, it became clear—at the latest when Andreas Babler stepped down as SPÖ leader—that the state party leaders of the Social Democrats want to revive an old alliance. The “direct line,” as the state-level Social Democrats call it, from ÖGB President Wolfgang Katzian to the Vice Chancellor’s office is to be cut off. This line of communication reportedly ran through Babler’s chief of staff and Katzian confidante, Sandra Breiteneder. The billion will be paid for by pensioners. The only remaining point of contention is who gets to spend it.