German Health Cost Curbs "Imperative"

German federal Health Minister Horst Seehofer says economies areimperative after the health funds posted a 1996 deficit of 6.3 billion Deutschemarks ($3.70 billion), 3.9 billion marks for western Germany and 2.4 billion marks for the eastern states. The deficit is however lower than expected.

The main legislative revisions planned to support this policy can be forced through by the coalition government without the agreement of the parliamentary upper house, and will increase pressure on the funds to reach stricter agreements on economies with the medical profession and other health care providers.

Also, the tendency for insured people to switch to funds offering better value for money is more extensive than expected. 1996 spending in several health service sectors rose above 5%, with drug spending up 6.3%. Average spending on the full range of treatments rose 3% against a rise in contribution income of only 1.4%.