"Our healthcare system comes with a hefty price tag, yet delivers subpar outcomes at most times"
Germany's Healthcare System: A Call for Efficiency and Reform
Germany's statutory health insurers face a significant financial deficit, with costs continuously on the rise. Economist Nicolas Ziebarth has identified inefficiencies within the German healthcare system as the culprit, with high costs and mediocre performance. This diagnosis, however, presents an opportunity for reforms that could simultaneously reduce costs and improve quality.
ntv.de: What is the financial situation of statutory health insurers?
Ziebarth notes that the current revenue streams are insufficient to cover the costs of the insurers, forcing them to increase additional contributions. This financial burden will be shouldered by employers and insured individuals, resulting in less disposable income due to higher contributions or increased wage costs from the employers' perspective. With pension and long-term care insurance also struggling with their revenues, this cumulative burden is a looming concern.
The Financial Hole: How Deep?
Despite an average additional contribution increase by 0.8 percentage points in 2025 and many statutory health insurers increasing their additional contribution even more, a deficit of 5.5 billion euros is still expected this year. To cover these costs in the short term without government intervention, many insurers would need to increase their additional contributions by another half percentage point, although this remains an unrealistic solution. The government's intention seems to be to plug this financial hole with tax money in the short term, but this would only postpone the inevitable structural problems and continued cost increases.
Reforms Needed Now
According to Ziebarth, fundamental structural reforms are needed alongside short-term immediate measures. These reforms extend to house physician-centered supply, which is also outlined in the coalition agreement. With the next federal election campaign coming up in 2028, swift action is essential to address these issues and prevent a worsening of the situation.
Trust and the Care System
In a recent poll, 92% of respondents expressed doubt in the reliability of the care system. While some reforms have already been initiated, the federal government could accelerate their implementation to improve trust in the system.
International Comparisons
Comparatively, Germany ranks second in the world in terms of healthcare costs, but our performance remains merely adequate at best. By learning from developed countries with healthcare systems that perform better than ours, Germany has the potential to reduce costs while maintaining, or even improving, quality care. This should not be about reducing costs in the long term but slowing their growth to prevent the ever-increasing burden on the economy.
Potential for Savings
Although many factors contribute to rising healthcare costs, a more strategic and coordinated approach can lead to significant savings. The goal is not necessarily to reduce costs significantly but rather to manage their growth in a sustainable manner. Through digital transformation, strategic reorientation, sustainability measures, regulatory and administrative reforms, and international cooperation, Germany can enhance the performance and cost-effectiveness of its healthcare system.
- The community policy for healthcare reform in Germany should explore vocational training programs for health professionals to increase efficiency and reduce costs within the system.
- There is a growing need for businesses to collaborate with healthcare providers and engage in health-and-wellness initiatives, as the financial burden on employers due to rising medical-conditions costs is a significant concern.
- Policymakers should seek insights from developed countries with high-performing healthcare systems, such as understanding their approach to science and technology in healthcare, to identify best practices and potential savings for the German system.
- General news outlets could focus on the positive impact of strategic reforms in the German healthcare system on finance, business, and politics, as well as improvements in health outcomes and overall wellness for the community.
