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Cost-shifting (and modernization) in German health care

Riesberg A, Busse R

EuroObserver 5(4): 4-5





The Social Health Insurance Modernization Act (SHIM Act) passed its final hurdle on 16th October 2003 when the Federal Council, the parliamentary chamber representing the 16 länder approved the legislation. The Act is a result of a compromise between the incumbent Social Democratic-Green government and the Christian Democratic opposition which holds the majority in the Federal Council. In 2004, the German social health insurance funds will receive financial relief to the tune of A9.8 billion (7% of the likely A140 billion expenditure in 2003). The legislation is also geared towards gradually generating savings of A23 billion for the social health insurance (SHI) system by 2007. Finally, the SHIM Act aims to increase the quality of care, efficient coordination and patient participation.

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