Economics of Health Care in Germany

Health care economics is a term used to describe the various elements that play a crucial role in converging, significantly influencing healthcare costs, expenses, and spending. The healthcare sector is responsible for understanding the individual parts, the healthcare providers, insurers, the government agencies, and the roles that both the public and private organizations play in driving these costs. Nonetheless, the health care economic studies also play a vital role in providing crucial information to the decision-makers to efficiently use the minimum available resources to maximize the health benefits.

In Germany, the health care system is categorically divided into different sectors: an insurance sector that entails both public and private insurance funds and a healthcare sector (Herwartz & Schley, 2018). In addition, pharmaceutical care is distributed by pharmacists, inpatient care and rehabilitation in clinics and hospitals, and nursing care is other services and departments in the German health care system. Nonetheless, the German healthcare system can be perceived as a dual private-public system that dates back to late 1880, hence making it one of the oldest healthcare systems in Europe.

However, in the current regime, the German doctors, specialists, and healthcare facilities have made it one of the world’s most crucial and best forms of healthcare systems. It is funded by statutory contributions that ensure that there is free healthcare for every citizen. In addition, there is also private health insurance through which the citizens may opt to replace or top up the state cover. All German residents are entitled to access the healthcare system through the public health insurance plan. The non-residents have to register themselves for private insurance coverage to access healthcare and treatment in Germany. In the case of the temporary tourists and visitors, they will pay for the treatment and later claim a reimbursement.

The government health insurance company (GVK) covers primary care with experienced and registered doctors. Nevertheless, the health insurance also provides for the employees earning close to $4700 a month to engage in the government healthcare plan (Herwartz & Schley, 2018). The hospital cares for inpatient and outpatient cases, and most importantly, it covers fundamental dental issues and treatment (Klein & von dem Knesebeck, 2018).

The major challenge concerning health care insurance in Germany is that GVK is not responsible for covering private consultations with specialists, private rooms in the healthcare facilities, dental implants, and contact lenses for adults. In addition, primary care in Germany entails all the doctors who play a vital role in treating the patients, especially those on the outpatient criteria. The nurses are also maximally utilized for primary care to ensure that the German citizens get the best healthcare services.

Germany, especially its healthcare system, appropriately handled COVID-19 as it implemented various regulations and measures. For example, the country mandated closing various business centers, imposing lockdowns, border controls, mandatory covering of the faces, and social distance (Herwartz & Schley, 2018). In addition, the state made enough effort to ensure citizens were well protected from the virus.

Nonetheless, when comparing the health care systems in Germany and the US, the Americans are divided, especially on how to pay for medical insurance and care. The higher spending in the health care system in the US also has limited insurance coverage, which is regarded as a significant challenge or con that the American citizens face. However, what makes Germany’s healthcare system much better is the privilege or advantage of offering a more reasonable cost for hospitals and the prescription of drugs compared to the ones offered in the US.


Herwartz, H., & Schley, K. (2018). Improving health care service provision by adapting to regional diversity: An efficiency analysis for the case of Germany. Health Policy, 122(3), 293-300. Web.

Klein, J., & von dem Knesebeck, O. (2018). Inequalities in health care utilization among migrants and non-migrants in Germany: A systematic review. International Journal for Equity in Health, 17(1), 1-10. Web.

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