German Health Spending Shows Sharp Rise

Spending by German public-sector health funds rose sharply in second-quarter 1994. The interior health funds, the IKK, estimate that spending per member in western germany in first-half 1994 increased 7.6% and 14.9% in the eastern states. In first-quarter 1994, overall spending by the IKK increased 6.8%.

Spending is still below 1992 levels, but the rise is seen as outpacing the rate of growth in basic wage rates on which premiums are calculated. The western rise in first-half 1994 was about 3.2% and that in the east was about 8.6%. The IKK says hospital-sector spending rose 6% and 9.5% in western and eastern Germany respectively in the six months; this growth did not break fixed budgetary limits but came as fund income contracted. Western German spending on drugs in the first half is said to have risen 6%, and outpatient treatment spending to have gone up 3.6%.

The industrial funds (BKK) followed the IKK by announcing a sharper rise in first-half 1994 health spending than in fund income. Spending per member in western Germany went up 6.5% against a 6% rise in income. Spending rose 19% in the east, while income rose 17%. Total public-sector fund spending in first-half 1993 had been 2.7% below first-half 1992, down 1.6% for the IKK and 2.9% for the BKK. Drug spending in first-half 1993 fell 18.3% in the IKK and 21.2% in the BKK.