German health reform back on track

The controversial German health service reform project which appeared set to flounder this month is now reportedly back on track after all night meetings involving the health policy experts of the Christian Democrat and Social Democrat coalition parties. The CDU is understood to have achieved a watering down of some of the proposals on the role of private health insurance which were seen by private health funds as threatening their existence.

The planned new basic tariff, which it had been intended should be offered by the private funds to all German citizens, will now be restricted to new clients of the funds, the over 55s and those on low incomes or otherwise describable as needy. The changes have avoided the prospect of a mass switch to the basic tariff by existing fund clients. In return for this major concession, the Social Democrats will hold onto the plan to introduce a legally-binding health insurance obligation.

That has had the effect that self-employed people falling on hard times and without health insurance had to be picked up in the social security network. An estimated 300,000 Germans currently have no health insurance and this situation is expected to change as the reform is brought in.