Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

12 May 2006

EZA 739 Briefing note: ECB Observer




Germany


The health care system is at the top of the reform agenda for the grand coalition government. Although the current negotiations among health care experts of both coalition parties are held in a secretive atmosphere, a reform compromise seems likely on the lines of the model presented by CDU floor leader 12 April. In a move away from the current system based on wage-related health care contributions transferred to the health insurers; contributions are to be channelled through a funded pool, through which an equal amount of 💪 per month will be distributed. Although likely to increase transparency and cost control, it is unlikely to reach key objectives such as securing sustainable funding or fostering of growth and job creation.

Asset Conclusions: Slow health care reform preserves monopoly profits for, in particular, healthcare service sector, hence positive for German pharmaceutical companies. Impact on economy mixed: negative impact from extending inefficiencies but longer term positive because of gradual progress towards greater competition.



© Graham Bishop

Documents associated with this article

EZA739.pdf


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment