2006
DOI: 10.1377/hlthaff.25.4.1143
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The Influence Of The Labor Market On German Health Care Reforms

Abstract: On the surface, the health care systems of Germany and the United States seem to be quite different from each other. However, in both systems, health care financing has close ties to the labor market. Recent changes in Germany's labor market have challenged the traditional employment-based funding of its social health insurance (SHI), to the extent that all political parties advocate decoupling health care financing from labor costs, to various degrees. This paper explores the impact of changes in the labor ma… Show more

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Cited by 7 publications
(4 citation statements)
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“…Also per person expenditures on health in Germany are one third higher than the OECD average [33]. One of the weaknesses of the GHCS stems from the labour market-based financing, which provides a narrow financing base vulnerable to economic downturns and a shift to a service-oriented economy [34]. Another inherent weakness is the absence of stringent evaluation mechanisms for the effectiveness of treatments and pharmaceuticals, making the system prone to overutilisation.…”
Section: Strength and Weaknesses Of The Ghcsmentioning
confidence: 99%
“…Also per person expenditures on health in Germany are one third higher than the OECD average [33]. One of the weaknesses of the GHCS stems from the labour market-based financing, which provides a narrow financing base vulnerable to economic downturns and a shift to a service-oriented economy [34]. Another inherent weakness is the absence of stringent evaluation mechanisms for the effectiveness of treatments and pharmaceuticals, making the system prone to overutilisation.…”
Section: Strength and Weaknesses Of The Ghcsmentioning
confidence: 99%
“…7 Principles of solidarity have been made most explicit in policy discussions in Germany. 8 As Stock, Redaelli and Lauterbach (2006) explain, the guiding principle of Germany’s Social Health Insurance is solidarity: “Services are rendered according to medical need.” Furthermore, “[Financing] implies cross-subsidization from low to high risks, [and] from high-income to low-income earners…” Concern for fairness motivates regulation of health insurance premiums in the U.S. as well, prohibiting or limiting discrimination by health status. 9 These strictures limit how well premiums charged to enrollees can match persons with health plans serving their preferences.…”
Section: Consumers and Gold And Silver Managed Care Plansmentioning
confidence: 99%
“… 11 This could be, for example, a payroll tax shared by employer and employee, as in Germany (Stock, Redaelli and Lauterbach, 2006). We disregard any efficiency consequences of tax finance in terms of distorting employment or other decisions.…”
mentioning
confidence: 99%
“…Among the services covered by the German state health insurance plan are prevention and early detection of certain diseases. However, those in the private health insurance programs receive more prevention options than those in the German state health insurance plan because some of the prevention options cost more than the state health insurance covers (Stock, Redaelli, & Lauterbach, 2006). The biggest advantage of the state health insurance program is that it insures family members at no additional cost.…”
Section: German and Us Health Care Systemsmentioning
confidence: 99%