The German Health Care System Essay

1379 Words Nov 8th, 2016 6 Pages
“To maintain, restore or improve health”, this is the goal of the German health care system.1 In order to strive to provide this care, Germany has a universal, multiple payer health care system which is divided into two major types of insurance: Statuary Health Insurance (SHI) and Private Health Insurance (PHI). The SHI is publically financed by independent, not for profit, non-government affiliated organizations. In addition, health insurance is compulsory for all legal residents in Germany. All citizens earning up to €48,000 per year are automatically enrolled and covered by SHI.2 Individuals whose earnings exceed the threshold for mandatory enrollment and the self-employed can choose to remain in the SHI, may opt to purchase PHI.2 The dependents of those who are employed also receive free coverage. About 86 percent of the population is covered by SHI and the remaining are covered by PHI.4 The central purpose of the statuary health system is the idea of solidarity.3 Individuals contributions are based on their income and receive the benefits depending on their level of necessity. Whereas, PHI insured individuals pay a premium according to benefits which were agreed between the insurer and insured individual as well risk upon entry.2 In Germany, citizens are provided with three types of required insurance, with health insurance being one. The other two benefits include accident insurance, which accounts for work-related accidents and is covered by the employer, and long…

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