• Internal Code :
  • Subject Code : PUBH6003:
  • University : Laureate International Universities
  • Subject Name : Health Economics

Assessment 2


g)  Health insurance has been described as being mandatory for Germany’s permanent residents and all the citizens. Blümel and Busse (n.d.) provided that, in Germany, it is provided by mainly two systems, substitutive PHI (Private Health insurance) and competing non-governmental, not-for-profit funds of health insurance which are provided by SHI (Statutory health insurance). In addition, the government has deemed health coverage to universal for all the legal German residents. To ensure this, the SHI covers health insurance for those employed citizens which ear less than USD 71,564 in a year. Moreover, a great portion of the German population (87%) receives benefits of SHI covered health coverage (Busse, Blümel, Knieps & Bärnighausen, 2017).

h) Regarding the positive health outcomes, these can be achieved if the economic conditions are right in the country. Dustmann, Fitzenberger, Schönberg and Spitz-Oener (2014) discussed that Germany is now considered as a superpower economically in Europe. This allows the German economy to improve its ability to perform and achieve better outcomes in health. Three levers have been identified which can help to achieve this include saving of the incentives, reduction in the deficits and performing basic research to facilitate innovation (US Chamber of Commerce Foundation, 2014). The use of these economic levers would help improve the healthcare practices which would result in better health outcomes (Dustmann et al., 2014).


Blümel, M. & Busse, R. (n.d.). The German health care system. Retrieved from https://international.commonwealthfund.org/countries/germany/

Busse, R., Blümel, M., Knieps, F., & Bärnighausen, T. (2017). Statutory health insurance in Germany: a health system shaped by 135 years of solidarity, self-governance, and competition. The Lancet, 390(10097), 882–897. doi:10.1016/s0140-6736(17)31280-1

Dustmann, C., Fitzenberger, B., Schönberg, U., & Spitz-Oener, A. (2014). From Sick Man of Europe to Economic Superstar: Germany’s Resurgent Economy. Journal of Economic Perspectives, 28(1), 167–188. doi:10.1257/jep.28.1.167

US Chamber of Commerce Foundation. (2014). Three Levers to Lift the Economy: Savings Incentives, Deficit Reduction and Basic Research. Retrieved from https://www.uschamberfoundation.org/three-levers-lift-economy-savings-incentives-deficit-reduction-and-basic-research

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