(Health interests; 07-03; p.6)

So, employers will profit from the measures - which is not astonishing, since that was one motivation for initiating changes.
The government stays away from extra contributions - which as well is explainable.
Private health insurances are profit oriented enterprises that have to survive in the market. If they fail, they go bust - it is up to the law maker to make sure that this will not work as a disadvantage for public health insurances, e.g. in respect to liability and balancing risk structures.

Patients have to make do with higher and more extra payments, but they do get rights of information, e.g. to inform themselves about spending patterns of their respective health insurance.
The pharmaceutical industry has to give mandatory discounts and will have to compete freely in the generic drugs market segment.
- According to Horst Seehofer, the respective losses for patients and industry will be roughly equal (A statement given in a dispute between him and B Rürup: Bayerischer Rundfunk, "Münchner Runde" of 28/07/03.).

Doctors and hospitals will not suffer direct losses, but establishing a payment system that is based on typical case treatments rather than drugs prescribed and things done as well as increased competition will foster "saving" behaviours.
A similar steering effect shall be brought about by limiting administrational costs of public health insurances.

Employees eventually have to finance sickness benefits alone in future times (currently, it is equally financed by employers and employees). - Whether or not that will lead to losses in real income depends on future wage and salary negotiations.

 

Conclusion

Reprising the classification by a hierarchy of interests, one finds that up to now only private health insurances have been let unhindered as cost increasers.
On the level of actors interested in cost cuts, so far weights have been moved in favour of employers.
How overall costs of the health system will develop thereby remains to be seen; however, by increased extra payments, transparency in costs and competition all scientists and politicians involved hope to achieve savings.

It has also to be said that the measures mentioned cannot but have a short-term effect on costs of the health system.
In principle, a decision has to be made for one of the two branches of the presented Y-model. - For several reasons, that should happen "at best yesterday": every further slowdown increases the problems, voters cannot as easily see the need for reforms if the economic situation seemingly improves and politicians are most capable to produce viable reforms as long as there are no secure government majorities in parliament or party majorities in the federal chamber, the Bundesrat.

(end of article)