 Image: Aenneken under CC 3.0 |
While the Germans are dominating the World Cup, the situation regarding their health insurance doesn’t look so bright. Just like the United States, their economy has been dealt several blows, and the nation is dealing with a major budget deficit.
Some believe that more direct government intervention will lower the cost of affordable health plans in the U.S., but Germany is proving that point wrong. Chancellor Angela Merkel (the German equivalent of our president) recently agreed to increase premiums for virtually all residents, from 14.9% to 15.5% of their gross pay–split between employers and employees. Insurers will also be allowed to ask for an extra premium to cover additional costs.
On the positive side, nearly 90% of the population is covered through their mandate. Unfortunately, they have failed to control severe jump in health care expenses.
