McKinsey&Company

Germany, like most countries, has been challenged by ever-rising health care costs, which now consume 10.4 percent of the country’s GDP. But it has been more proactive than most countries in seeking new ways to rein in those costs. Germany’s cost-control efforts reflect its firm commitment to two goals: to ensure that all its citizens receive the same level of high-quality care and to keep health care spending in line with the health system’s revenues. Achieving those goals is becoming increasingly difficult, however, given mounting cost pressures and Germany’s changing demographics. Population growth is stagnant, and the population is aging rapidly. The health system is funded on a pay-as-you-go basis, and unless spending is kept under control, contributions from the dwindling number of active workers could soon be insufficient to cover the cost of care for retirees.
To find out more about the approaches Germany has been using to manage its health care spending, Health International recently spoke with Franz Knieps, director general for public health care, health insurance, and long-term care insurance in the German Federal Ministry of Health.

• How Germany is reining in health care costs: An interview with Franz Knieps (PDF - 759 KB)