THE CURRENT STATE OF THE HEALTH CARE SYSTEM DEVELOPMENT IN THE FEDERAL REPUBLIC OF GERMANY

Abstract

The article examines the current state of the health care system development in the Federal Republic of Germany. It found that legislation and public health policy set the framework within which health care partners can make decisions, and health policy priorities are aligned with the goal of cost-effective use of financial resources. The health care system of Germany is considered, which is divided into three levels: 1) establishing a framework through state requirements and similar federal structures in Germany; 2) health care organization through self-government with its corporations and associations; 3) specific supply of health insurance companies, doctors, various medical professions, hospitals and pharmacies, whose interests are represented by associations. Because the German health care system is organized through social insurance, it differs from state-funded systems, which mostly cover health care costs through taxes, and market-based systems that cover health risks through private insurance companies. The German healthcare system can be seen as a middle ground between publicly funded and organized systems, as well as purely private sector systems. It is based on three principles of personal: responsibility, subsidiarity and solidarity. It has been established that social insurance is characterized by the principle of self-management. Health care providers and service providers, as well as employers and insured persons organize to control and shape the health care system, the state only defines the framework conditions and supervises. Health insurance protects about 90 percent of the population from the financial risks associated with the costs of illness and is financed by premiums paid by insured individuals and by a federal subsidy.