Health Care in Germany

1884 Words8 Pages
Healthcare in Germany
Nabil Fakhoury

Florida Atlantic University
Into to Healthcare Systems (HSA 6103)
Dr. Shehadeh
Fall 2014

Table of contents

Access and Coverage2
Expenditures and Finance3
Hospitals and physicians6

The German healthcare system can be traced back to the 1883, when Prince Otto Von Bismark passed a health insurance bill into a law. The German healthcare model is still known as the “Bismark Model” today (Khazan, 2014). There are many differences between the healthcare systems in the United States and in Germany. The German healthcare system does have some drawbacks; however, its many advantages rank it as one of top countries
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Expenditures and Finance
Germany’s total healthcare expenditures account for 10.9% of gross domestic product compared to 17.9% in the U.S. (Green &amp; Irving, 2001). In 2004, SHI contributed to 56% of the funding, the remaining contributions came from complimentary sources such as the Statutory Long-term Care Insurance, accident insurance, local governments and municipalities, out of pocket payments and non-governmental institutions (Green &amp; Irving, 2001). In all, public sources in Germany contribute to 73% of total expenditures, while private sources contribute the remaining 27%. Sickness funds are primarily funded by payroll taxes, which account to 15.5% of gross income. Enrollees pay 8.2% and employers cover the remaining 7.3%. Those who do not work can access sickness funds by paying a portion of their unemployment benefits (Green &amp; Irving, 2001). Unlike American citizens, Germans contribute a fixed rate to their sickness fund annually. In 2009, the government established the Central Health Funds (CHF), which collects all contributions and then redistributes the funds to sickness funds according to a risk equalization formula. Sickness funds with high-risk patients are allocated more money (Green &amp; Irving, 2001).
German SHI and PHI enrollees enjoy the benefits of having no network
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