Healthcare Expenditures in Germany - Recent Trends

In 2022, healthcare costs in Germany rose significantly, with an increase of 4.8% compared to the previous year. Total healthcare expenditures amounted to €497.7 billion.

Health insurance was crucial for financing these costs. Statutory health insurance covered 53.3% of expenditures. Social long-term care insurance followed with €57.7 billion, representing 11.6% of total expenditures.

Since the COVID-19 pandemic, healthcare spending has increased by 20%, or €83.1 billion. This shows the strong impact the pandemic had on the healthcare system. Over 40% of COVID-related expenses went to testing measures.

A slight decrease in healthcare spending is expected in 2023, with expenditures projected to fall to €494.6 billion. Despite this short-term decline, there is a continuous upward trend in healthcare costs in Germany.

Healthcare Expenditures: Definition and Scope

Healthcare expenditures are critical in Germany, covering all costs related to healthcare services, prevention, rehabilitation, and care. These data are based on the OECD's "System of Health Accounts" from 2000.

Covered Services and Goods

Healthcare expenditures include both operating and investment costs in the healthcare sector, encompassing medical treatments, medications, and care. Research and training in the healthcare sector are also taken into account.

Geographic Scope of Data Collection

Healthcare spending is measured for the German resident population. This includes purchases made abroad by Germans but excludes spending by foreigners within Germany.

Extended Scope of Services

The extended scope also includes income-related benefits, such as continued pay during illness. These data help to understand the overall burden on the healthcare system. The healthcare expenditure report provides essential information for health policy decision-makers.

Recent Development of Healthcare Expenditures in 2022

In 2022, healthcare spending in Germany saw a significant increase, with the total volume reaching €497.7 billion, a 4.8% rise from the previous year.

Total Volume and Per Capita Spending

Per capita, healthcare spending was €5,939. In North Rhine-Westphalia (NRW), this figure was even higher at €6,126, making NRW a leader in healthcare spending.

NRW accounted for €110.5 billion in healthcare costs, representing 22.2% of total German expenditures.

Share of GDP

The share of healthcare expenditures in GDP slightly decreased to 12.8%, a 0.3 percentage point drop compared to the previous year. Nevertheless, the healthcare sector remains a key economic factor.

COVID-Related Additional Costs

COVID-19-related costs in 2022 totaled €36.1 billion, with €14.5 billion spent on tests and €9.4 billion on the vaccination campaign. Public budgets had to increase spending by 15.6%, totaling €48.3 billion, a significant portion of which was allocated to COVID measures.

Major Payers of Healthcare Costs

Statutory health insurance is a cornerstone of Germany’s healthcare system. In 2022, it spent €265.4 billion on healthcare costs, accounting for 53.3% of total expenditures.

Social long-term care insurance covered €57.7 billion, or 11.6% of total costs. Private households and organizations contributed €56.8 billion, or 11.4% of expenditures.

Private health insurance spent €38.3 billion, making up 7.7% of healthcare costs. These figures highlight the complexity of healthcare system financing.

Medical advances and increasing life expectancy drive costs, with demographic changes also playing a role. Both statutory and private insurers must manage resources efficiently to fund healthcare services.

Pandemic-Related Special Effects in Healthcare

The COVID-19 pandemic placed a heavy burden on Germany’s healthcare system. In 2022, pandemic-related costs amounted to €36.1 billion, with significant spending on virus containment measures.

Spending on COVID-19 Tests

COVID-19 tests were the largest cost factor, accounting for 40.1% of expenses, or €14.5 billion. This shows the intensity of testing efforts in Germany.

Costs of the Vaccination Campaign

The vaccination campaign also incurred high costs, with €9.4 billion spent on vaccinations, representing 26% of COVID-related expenses. This includes costs for vaccination centers and vaccines.

Additional Administrative Costs

The pandemic increased administrative expenses in the healthcare sector, with additional costs for organizing tests, coordinating vaccinations, and implementing protective measures. These costs contributed to the overall total.

Forecast for Healthcare Expenditures in 2023

Healthcare spending in 2023 may change slightly, with a projected decrease in the healthcare budget to €494.6 billion, 0.6% less than the previous year.

Expected Decrease in Spending

The primary reason for this decline is reduced COVID-19-related spending. Public budgets plan to cut pandemic-related measures by 51.6%, which will ease the burden on the healthcare system.

Changes Among Payers

Despite the decline, health insurance costs are expected to rise. Statutory health insurance plans a 5.2% increase, while private health insurance is expected to rise by 9.1%. This indicates that healthcare expenditures will remain crucial.

The forecast reflects the dynamics in the healthcare system. Some areas are saving, while others face higher costs, which will significantly impact the healthcare budget in the coming years.

Factors Influencing Healthcare Costs

The German healthcare market is influenced by many factors, with demographic changes being especially significant. As the population ages, demand for care and medical services rises.

In 2021, healthcare spending hit a new high of €474.1 billion.

Medical advancements also drive up costs. New treatments and technologies improve care but are costly. Per capita spending in 2021 was €5,699.

Shifts in the disease spectrum have a strong impact on expenses.

As a provider market, healthcare has a unique dynamic. Service expansions and price effects lead to rising costs, and high personnel intensity and growing quality standards contribute as well.

The share of healthcare expenditures in GDP rose to 13.2% in 2021. These developments show the complexity of factors influencing healthcare costs.

FAQ

How high were healthcare expenditures in Germany in 2022?

In 2022, healthcare expenditures in Germany rose by 4.8% to €497.7 billion. Each resident spent an average of €5,939.

What share of GDP did healthcare expenditures represent?

In 2022, healthcare expenditures accounted for 12.8% of the gross domestic product (GDP).

What do healthcare expenditures include?

Healthcare expenditures cover prevention, treatment, rehabilitation, and care, as well as administrative costs and investments. Income-related benefits, such as continued pay during illness, and research in healthcare are also included.

Who was the largest payer in healthcare in 2022?

In 2022, statutory health insurance was the largest payer, spending €265.4 billion, or 53.3% of total expenditures.

How much were pandemic-related healthcare costs in 2022?

In 2022, pandemic-related costs amounted to €36.1 billion. COVID-19 tests cost €14.5 billion, and the vaccination campaign cost €9.4 billion.

How are healthcare costs expected to develop in 2023?

Healthcare expenditures are expected to fall slightly in 2023, to €494.6 billion. Statutory health insurance is projected to increase by 5.2%, while private insurance may rise by 9.1%.

What factors influence the development of healthcare costs?

Medical advances, shifts in the disease spectrum, and demographic changes are major factors. Additionally, the provider market, high personnel intensity, and quality standards play a role.