politics

Social Security: Senate abolishes the 2.05% tax on mutual insurers

Friday, Nov. 13: the Senate almost unanimously removed Article 12 of the Social Security bill meant to renew the 2.05% tax on mutual insurers in 2027.

budget, sécu, sénat, craignant, rejet, taxe, mutuelles, sénat supprime

Key facts

  • On Friday, November 13, in mid-morning, the Senate removes Article 12 of the Social Security financing bill (PLFSS). That article provided for…
  • Senators reject the measure almost unanimously, against the government's advice. They fear that the tax will ultimately be passed on to the…
  • The vote comes as the French march for an increase in purchasing power. In a rare moment of unity between the left and the right, lawmakers of all…

On Friday, November 13, in mid-morning, the Senate removes Article 12 of the Social Security financing bill (PLFSS). That article provided for extending into 2027 the 2.05% tax introduced in 2026 on mutual insurers, for the benefit of the health-insurance branch.

Senators reject the measure almost unanimously, against the government's advice. They fear that the tax will ultimately be passed on to the contributions paid by members.

The vote comes as the French march for an increase in purchasing power. In a rare moment of unity between the left and the right, lawmakers of all stripes take a stand against the executive.

The executive nonetheless intends to keep this tax contribution in the Social Security budget. It was introduced in 2026, on an exceptional basis, on supplementary health-insurance organizations.

The provision appears in the Social Security financing bill for 2027. Its removal by the senators comes before the end of the examination of the text.

Employers' organizations, for their part, believe that the 2027 budget will eat into all or part of companies' room for maneuver.

The day before, Thursday, November 12, senators approve the new method of calculating reductions in employer contributions on employment. They postpone the cut in these reductions until April 1.

Companies will thus have to pay an additional 2.8 billion euros to social-security bodies in 2027. The amount is 900 million euros less than what the government provided for in its bill.

The Senate version, provisional at this stage, sets April 1 as the date of entry into force of the new reduction mechanism.

Senators also massively oppose the abolition, next year, of the contribution exemption applicable to public work-integration workshops and sites.

Examination of the PLFSS continues in the Senate until the beginning of next week. A formal vote is scheduled for Wednesday.

Dig deeper

What is the PLFSS?

The social security financing bill sets, each year, the revenue and expenditure of the social security system, including the health branch. The Senate is examining the text for 2027 here.

What is the Senate in this procedure?

The Senate is the upper house of the French Parliament. It can amend or delete articles of the PLFSS, in this case against the government's wishes.

What are the mutual insurers and complementary organizations targeted by the tax?

They are private health insurers that supplement reimbursements from the national health insurance system. The 2.05% tax, created in 2026 on an exceptional basis, was intended to fund the health branch.

Why does this vote matter for insured people?

Senators fear that the tax will be passed on to members' contributions, while French people are demonstrating for purchasing power.

What does the vote change regarding employer contribution relief?

Senators approved a new calculation method and postponed until April 1 the reduction of this relief, which would result in an additional 2.8 billion euros being paid to social security bodies in 2027, or 900 million less than in the government's bill.

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