The French government has announced a set of measures aimed at cutting the Social Security deficit by about half, targeting areas such as sick leave, health insurance reimbursements, and medical deductible limits. The Social Security Financing Bill (PLFSS), introduced on October 1st, aims to reduce the deficit to 12.7 billion euros by 2027, nearly halving it from the current level. However, the government previously failed to bring the deficit below 20 billion euros this year. Health Minister Stéphanie Rist has said the deficit is expected to reach 22.6 billion euros by the end of 2026, following a deficit of -21.6 billion euros in 2025. The health insurance branch is expected to reduce its deficit to 7.8 billion euros in 2027, down from 12.5 billion euros this year. The National Health Insurance Expenditure Objective (Ondam) for 2027 is set at +2%, which is above inflation but less than the 3.1% approved for 2026. The Ondam specific to health establishments is set at 3%, below the 3.9% requested by the French Hospital Federation. The government aims to save between 5 and 6 billion euros, despite rising health expenditures due to an aging population and increased chronic diseases.
To achieve these savings, the government plans to cut 2 billion euros from sick leave expenses. Half of this will be achieved through negotiations with social partners, as previously announced by the Minister of Labor and Solidarity, Jean-Pierre Farandou. The other half will come from aligning the taxation of sick leave with that of work, a measure to be included in the Finance Bill (PLF). Since September 1st, the duration of "classic" sick leaves has been capped at a maximum of one month, in line with the Social Security budget for 2026. Starting October 15th, the maximum duration of work stoppages for certain patients, particularly those with mild depression or musculoskeletal disorders, will be reduced to one year instead of three years. These conditions account for two-thirds of long-term sick leaves, and the government expects to save "hundreds of millions of euros." Another decree proposal aims to lower the cap on daily sick leave benefits for patients who have suffered a work-related accident or occupational disease, from more than 3 times the minimum wage to 1.8 times the minimum wage. Evidence of the government's focus on work stoppages is seen in previous actions, such as when François Bayrou, while at Matignon, reduced the cap on daily sick leave benefits for classic sick leaves from 1.8 to 1.4 times the minimum wage. Social Security expenses for sick leave, including all categories, reached 17.9 billion euros in 2025, with 12.1 billion for classic sick leaves and 5.8 billion for work-related accidents and occupational diseases.
Measures to reduce health insurance reimbursements have already been decided and will not require parliamentary approval. Starting January 1, 2027, the government will reimburse only half of dental care instead of the current 60%. The coverage of medical transport will be slightly reduced, going from 55% to 50%. Medicines with low medical need will be reimbursed at 5% instead of 15%, and those with moderate medical need at 15% instead of 30%. The French Mutualist Association estimates the cost of these changes to be 1.5 billion euros. Additionally, the annual limits of medical deductibles and flat-rate contributions, which are small amounts deducted from health insurance reimbursements on medicines, medical procedures, tests, and analyses and trips in medical transport, have been revised upward since October 1st. They now go to 70 euros instead of 50, meaning a maximum of 140 euros out-of-pocket costs for patients, excluding honorarium overruns. This measure required only a simple decree published in the Official Journal, avoiding the need for legislative changes and sparing the government from a parliamentary setback.
French Government Announces Measures to Reduce Social Security Deficit
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