Improve the flexibility of the system
For a considerable time, different German governments have been attempting
to improve the flexibility of the system and to reduce the gap between the
expectations of the employee and the employer.
A health service reform with
the general intention of reducing health insurance costs took effect in January
2004 and was followed by another in 2008/9. Unfortunately, initial savings
from the 2004 reform resulting from the curtailment of benefits were largely
mopped up by price increases, so health insurance contribution rates have
remained much as they ever were.
There have also been cuts in benefits in other
parts of the social security system, but these, too, have largely been absorbed.
Despite these efforts, rates remain high at 39.45%.
EU Forecast
euf:ba18e:25/nws-01