The Role Of Health Insurance In Germany

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Germany is believed to be the first country to present a national system of social and health insurance and a mandatory health insurance requirement was introduced at the national level in 1883.2 Statutory health insurance can be traced all the way back to mutual-aid societies in the late Middle Ages. Industrial workers in the nineteenth century started the idea of SHI by creating a voluntary mutual-aid organization that was specific for their occupation. From 1885 to 1925 SHI was expanded from just 10% of the population to 51% of the population and even rose to between 88-100% of the population by 1949 and on. As of 2014, 86% of the German population is covered through SHI and 11% are covered through substitutive PHI. Germany requires…show more content…
The German government has no direct role in the financing or delivery of health care, but they do play a role in PHI to ensure that individuals do not acquire large premium increases as they age and that by chance those individuals experience a sudden decrease in income, they will not become weighed down with outrageous premiums. PHI also plays a complementary role to SHI by covering minor benefits, access to amenities, and copayments that SHI does not cover1. When it comes to the advantages of the German healthcare system, certain aspects are obvious. First, Germany’s system offers healthcare for everyone. Every employed and legal citizen is covered by the SHI, therefore healthcare is accessible to this population. This allows the nation to have a reduction in illnesses among the general population, thereby increasing productivity. Second, poverty and bankruptcy within the general German population is reduced due to the decrease in medical costs for the citizens, who find it easier to maintain their health. Individuals can seek healthcare when needed more quickly and easily, therefore they have higher success rates when it comes to recovery. Third, physicians are better able to concentrate on treating their patients instead of constantly worrying about insurance paperwork and liability. Fourth, equality and fairness is promoted within the people because they all have the same access to healthcare, no matter their level of health literacy or total
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