The Role Of Health Insurance In Germany

In 2010, the United States created The Affordable Care Act (ACA). The objective was to share the responsibility of costs between the government, individuals, and employers to provide affordable access to quality health insurance. “However, health coverage remains fragmented, with numerous private and public sources, as well as wide gaps in insured rates across the U.S. population.” (“United States: International Health Care System Profiles,” n.d.). Each individual state within the US, generally has control over private insurance.

Germany’s healthcare system is split into two types of coverage which is public and private health insurance. Health insurance companies are not able to deny people coverage due to pre-existing illnesses or to discontinue their treatment because of high costs. The public health care insurance is provided by statute to individuals who are not eligible for private insurance which is people who are salary and make under $50,000 annually. As people age and become ill, they are able to opt out of their insurance and turn to the government’s option. As the economy continues to fluctuate, the population of Germany relies more heavily on the legislative insurance which consists of 85-90% of the population.

It works by having German citizens that work pay half of healthcare cost and the employer paying the other half of the healthcare cost in monthly premiums into what they call non-profit “sickness funds”. Those with a high income over $70,000 can opt out of the public system and purchase a private insurance. Each person in Germany has the choice of hundreds sickness funds to join, and healthcare coverage follows the patient. Every citizen of Germany knows that they can have access to every healthcare need that they may have regardless of their ability to pay. This gives Germans a sense of entitlement to healthcare without any

Socialized medical systems are designed to disregard the insurance industry and disregard income while providing health care for all. Healthcare in the United States is constantly changing and advancing, which requires the cost of health insurance to rise. The idea of socialized medicine is prominent, until the aspects of socialized medicine are brought to attention. Every aspect of a socialized health care industry is controlled and powered by the government; most doctors, nurses, medics and administrators are government employees, and the government decides when, where, and how services are provided. Even though socialized healthcare systems would save money, it is a prominent idea but not worth the problems because total government control over the way healthcare is distributed would result in complications of the citizens.

As some people were skeptical about the basis for the ranking, several studies were conducted, this time including “amenable mortality” in the criteria. France was first in the ranking. One good thing about France’s health care system is that everyone has health care. The country is also reported to rely on private and government insurance. Unlike the United States, France lets its citizens to have freedom in choosing hospitals, doctors, and care. Additionally, the health care system does not put much constrain on doctors with regards to making medical decisions. The same situation is evident on German health care system, where everyone has fully portable health insurance which comes with package of benefits. Like France, Germany lets its patients have freedom in choosing doctor and hospital during illness. A survey showed that patients and physicians in Germany are both satisfied with their health care system (Reinhardt, 1994, p.22).

In comparison, the Canadian system features mandatory insurance, but this is purchased from the government rather than from private insurance companies. The coverage under this insurance is standardized across provinces and is guaranteed to all. The British system is similar, but without the insurance component since most funding comes from general taxation. The German system is something of a hybrid in that there are private insurance companies. There is mandatory insurance and private insurance, with the system being a total of 77% government-funded.

The Swiss healthcare adopted a system with the principles of universality and equality requiring all individuals to purchase health insurance on the private market, providing financial assistance to those on lower incomes, and regulating the insurance market to protect those with poor health. The current Swiss health care system came into effect in 1996 under the Health Insurance Law of 18 March 1994, introducing a managed health care system to provide full coverage in basic health insurance, which is regulated by the Federal Office of Public Health, and outlined the level of health care that patients should receive and allowed competition between insurers in enhancing standards and decreasing insurance premiums costs. Insurers require to accept all applicants, and cannot vary premiums based on the health of each consumer and make profits on basic package plans. Individuals are permitted to purchase supplementary insurance to fund additional health care, but other regulations are applied with regards to enrolment, for-profit status, and premium variations. Supplementary insurance is regulated by the Federal Office of Private Insurance and is voluntary. Primary care providers are funded through reimbursement from insurers (Holly, et al, 2004; Mossialos, et al., 2015).

There are many individuals’ that think the German health care system is one of the best in the world. Back in 1883 a man by the name of Otto von Bismarck, created Germany’s health care system; a universal health care system which is the oldest in Europe ("Otto von Bismarck," 2012). When the German health care system was created, it was mandatory for a select few mainly, low-income workers and specific government employees. Gradually the system was expanded to cover the entire German population. Under the German universal health care system 85 % of their population has

Germany has a market based health system. They have universal health care that covers medical, dental, mental health and even homeopathy. Insurance companies cannot make a profit from insured customers. Therefore, the price for insurance is negotiated between the government and the Insurance provider. Like any other healthcare system there are

Germany’s health care system pays for not only healthcare basics but also dental, optical, mental health. They will also pay for alternative therapies like homeopathy, to go to a spa, and more. The healthcare system is highly accepted by the German population. Pregnant women pay nothing for their care, while most Germans have a co-pay of $15 dollars once every 3 months for their doctor visits (Saul, 2014).

Currently, the issue of health insurance has been a bone of contention for the public regarding whether the United States government should provide this health plan or not. People often possess different perspectives and refer to pros and cons on both sides of the spectrum. While some believes a universal healthcare system will set a foundation for a lower quality of service, increasing governmental finance deficit, and higher taxes, others do not hold the same thought. A universal healthcare system brings enormous advantages rather than disadvantages, such as all-inclusive population coverage, convenient accessibility, low time cost, and affordable medical cost, all of which not only provide minimum insurance to the disadvantaged but also improve the efficiency of medical resources distribution.

An evaluation of the insurances for these two systems must be viewed including, different insurances available and the individuals covered will be assessed. Germany has funds for sick individuals can purchase that are supported by taxes collected from employment (Thomas & Mossialos, 2010). The sick funds are primarily obtained from payer systems. In the United States, insurance may be employer based or coverage

The United States as compared to Bismarck Model and other universal health care systems is lacking control and so fragmented especially to other nations. Bismarck Model or as stated in the text book “the insurance model” is known as the oldest health care model (Kovner & Knickman, 2011). Although, every employer and employee (payroll deductions) contributes according to income (Kovner & Knickman, 2011). Bismarck varies in the “basic coverage” from one country to another (Kovner & Knickman, 2011). Found in Germany, France, Belgium, Netherlands, Switzerland, Latin America, and Japan (Kovner & Knickman, 2011). This is not quite like the United States, where the funds go to the government (Kovner & Knickman, 2011).

Waiting lists for treatments are rare. Medical facilities are equipped with the latest technology and the statutory health insurance scheme provides nearly full cover for most medical treatments and medicines. Almost everybody in Germany has access to this system, irrespective of income or social status.

Countries that have universal health plans, like Japan and Germany, have better life expectancy rates, spend less on health care, and have more than double the number of its citizens insured (Stephens & Ledlow, 2010). While the debate over