Healthcare Costs in Germany - Overview & Analysis

The German healthcare system faces significant challenges. In 2022, healthcare expenditures in Germany reached a new high, increasing by 4.8% to €497.7 billion. Per capita, spending was €5,939.

Healthcare economics are vital to the German economy, with healthcare expenses accounting for 12.8% of the gross domestic product (GDP). The statutory health insurance system bore most of these costs, covering 53.3%.

The COVID-19 pandemic had a major impact on the healthcare system. Since 2020, expenditures have risen by 20%, or €83.1 billion. Over 40% of pandemic spending was allocated to testing. For 2023, a slight decrease in healthcare costs to €494.6 billion is expected.

Recent Trends in Healthcare Costs

Healthcare costs in Germany have risen significantly. Since 2000, they have increased by 132%, reaching nearly €500 billion. Per capita costs have also increased considerably.

Increase of 4.8% to €497.7 Billion

In 2022, healthcare expenditures hit a new high, rising by 4.8% to €497.7 billion, indicating a trend of increasing costs in the healthcare sector.

Per Capita Spending of €5,939

In 2022, healthcare spending per person was €5,939, highlighting how much each citizen spends on health. Medical advancements and demographic changes drive these costs.

Projections for 2023

A slight decrease in healthcare expenditures is anticipated for 2023, with costs projected to fall by 0.6% to €494.6 billion. This would mark only the second time since 1992 that costs have decreased.

Definition and Measurement of Healthcare Expenditures

Since 1992, Germany has collected data on healthcare economics, helping us understand healthcare costs accurately. These data are crucial for healthcare statistics.

Scope of Services and Goods Covered

Healthcare expenses include everything necessary for health, such as prevention, treatment, rehabilitation, and care. Administrative costs and healthcare investments are also included.

The methodology is based on the "System of Health Accounts 2011," developed by the OECD, WHO, and Eurostat.

Spatial Scope of Data Collection

The report includes purchases abroad to provide a complete view of German healthcare spending. The OECD ensures international comparability of the data.

Extended Service Range

Data collection includes not only direct healthcare expenses but also income-related benefits like continued pay during illness. Research and training in healthcare are also recorded.

This comprehensive perspective allows for a holistic analysis of healthcare costs in Germany.

Healthcare Costs in the Context of the Pandemic

The COVID-19 pandemic greatly influenced healthcare spending in Germany. In 2022, COVID-19-related costs amounted to €36.1 billion, with €14.5 billion going to testing.

The vaccination campaign cost €9.4 billion. The healthcare fund spent €21.4 billion on combating the pandemic, mainly reimbursed by the federal government.

For children and adolescents, healthcare costs related to the pandemic were €32.3 million in 2020 and 2021. Among adults, ongoing illnesses cost €161.7 million annually. Work disability results in annual costs of €2.1 to €4.1 billion.

Unemployment due to mental illness causes additional annual costs of €553.1 million to €1.2 billion. Experts call for strengthening healthcare and social infrastructure, advocating for increased investment in preventive care for adolescents.

Expanding therapeutic services aims to detect and treat mental health issues early, helping to mitigate the long-term effects of the pandemic.

Distribution of Expenditures by Payer

In Germany, healthcare costs are divided among different payers. The statutory health insurance system bears the largest share, with public funds and private health insurance also playing significant roles.

Role of Statutory Health Insurance

The statutory health insurance covers the majority of healthcare expenses, accounting for 56.4% of costs, or €279.1 billion, underscoring its importance in the healthcare system.

Public Sector Expenditures

Public funds cover 4.7% of expenses, totaling €23.4 billion, which goes to areas such as prevention and health promotion.

Private Health Insurance Contribution

Private health insurance contributes 8.5%, or €41.8 billion, complementing statutory health insurance with additional services.

The social long-term care insurance and private households contribute 11.8% and 12% of expenses, respectively. Employers and other insurance branches make smaller contributions. Total healthcare spending in 2023 amounted to €494.7 billion.

Economic Significance of Healthcare Expenditures

Healthcare economics are vital to the German economy, with healthcare expenditures accounting for 12.8% of GDP in 2022, highlighting the healthcare sector's importance to the economy.

Share of GDP

Compared to the previous year, this share decreased by 0.3 percentage points, but the healthcare sector remains a significant part of the economy. Per capita healthcare spending rose significantly from 1992 to 2020.

Overall Spending Trends

Since the COVID-19 pandemic, healthcare spending has risen by 20%, or €83.1 billion, underscoring the importance of health during crises.

Health insurance covered €241 billion in 2020, a major portion of total expenditures. Healthcare spending statistics help improve healthcare policy.

FAQ

What were healthcare expenditures in Germany in 2022?

In Germany, healthcare expenditures totaled €497.7 billion in 2022, a 4.8% increase compared to the previous year.

How much was spent per capita on health?

In 2022, each resident spent an average of €5,939 on healthcare services.

What is the forecast for healthcare spending in 2023?

Healthcare expenditures are expected to decrease in 2023, falling by 0.6% to €494.6 billion.

What do healthcare expenditures include?

Healthcare expenditures cover prevention, treatment, rehabilitation, and care, as well as administrative costs and healthcare investments.

How much was spent on pandemic-related expenses in 2022?

In 2022, pandemic-related expenses totaled €36.1 billion, with the largest share, 40.1%, allocated to testing.

What share did statutory health insurance contribute to healthcare costs?

In 2022, statutory health insurance contributed 53.3% to healthcare costs, amounting to €265.4 billion.

What percentage of GDP did healthcare expenditures represent?

In 2022, healthcare expenditures accounted for 12.8% of Germany’s GDP.

How have healthcare costs developed since the beginning of the COVID-19 pandemic?

Since 2020, healthcare expenditures have increased by 20%, or €83.1 billion.

What is the purpose of healthcare expenditure statistics?

Healthcare expenditure statistics help evaluate preventive and health policy measures and identify potential savings.