German Health Care Spending In 1994

Western German public-sector health care spending rose 6.8% in 1994, compared with a rise of only 2.5% in the basic wage rates used to calculate premium levels. In eastern Germany, spending rose 15.5% compared with a 9.2% rise in basic wage rates.

However, Health Minister Horst Seehofer said the health funds ended 1994 2.1 billion Deutschemarks ($1.5 billion) in surplus, and he was "content" with the result. He added that the health fund system was back on a solid basis and had kept spending growth in 1993 and 1994 within the rates of growth of wages and salaries. The prospects for a breakeven position on fund spending in 1995 are reportedly good because of new sources of savings arising from recent insurance regulatory changes.