Private Health insurance Boosts German Healthcare Sales by 14.2% in 2023
Table of Contents
- Private Health insurance Boosts German Healthcare Sales by 14.2% in 2023
- Understanding Additional Sales in German Healthcare
- Outpatient Care Leads the Way in Additional Sales
- Dental Care: A Significant Contributor
- Surge in Spending on Medicines and Aids
- Inpatient Care: Varied calculation methods
- overall Expenditure: PKV’s Significant Share
- long-Term Trends: PKV Expenditure Growth Slows
- Evergreen Insights: The Evolution of German Healthcare
- Frequently Asked Questions About Private Health Insurance in Germany
Cologne,Germany – A new report reveals that additional sales generated by privately insured individuals (PKV) in Germany’s healthcare system reached €14.46 billion in 2023, marking a significant 14.2% increase compared to the previous year. The Scientific Institute of private Health Insurance (WIP) 2025 annual report highlights that outpatient medical care accounted for the largest share of these additional sales, totaling €7.99 billion.
Understanding Additional Sales in German Healthcare
Additional sales represent the difference in spending between privately insured individuals and those covered by statutory health insurance (GKV). This difference primarily arises from higher reimbursement rates, optional services in hospitals, and more extensive diagnostic and treatment procedures for PKV members.
Did You Know? Germany’s healthcare system is dual-track, with both statutory (GKV) and private (PKV) insurance options. About 11% of the population is covered by PKV [[1]].
Outpatient Care Leads the Way in Additional Sales
Outpatient medical care accounted for the largest portion of additional sales, reaching €7.99 billion, a 13.3% increase. Total spending by privately insured individuals in this sector amounted to €14.23 billion, compared to the €6.24 billion that would have been billed under statutory health insurance rates.
The WIP report indicates an average additional sales of €73,839 per PKV insured person, a 15.3% increase from 2022. This trend varies by age and gender, with younger women incurring higher expenses due to obstetrical services, while additional sales for men increase significantly in older age.
Dental Care: A Significant Contributor
Dental care ranks second in terms of additional sales generated by PKV insured individuals, totaling €3.02 billion. After accounting for cost-sharing by GKV insured individuals, the net additional sales amount to €2.46 billion, resulting in an average additional sales of €67,775 for dental practices.
Surge in Spending on Medicines and Aids
The supply of remedies contributed €1.1 billion in additional sales. Pharmaceuticals and aids saw a particularly high increase, reaching €1.07 billion,a substantial 27.6% rise.This increase is primarily attributed to the absence of discount contracts in the PKV system and a higher utilization of innovative and patent-protected medications. The supply of aids contributed €560 million to the additional sales.
Inpatient Care: Varied calculation methods
While inpatient care billing is standardized through DRG case flat rates, additional sales of €390 million were still recorded, partly due to less frequent hospital stays among PKV insured individuals. An choice calculation method, considering only elective services such as single/double rooms and chief physician treatment, reveals additional sales of €2.01 billion, according to WIP.
In 2023, PKV performance expenditure in the examined areas totaled €44.95 billion, compared to €243.29 billion for the GKV. The WIP report emphasizes that PKV insured individuals, representing 10.4% of the population, account for a disproportionately high share of these expenses, averaging 15.6%. This proportion is particularly pronounced in outpatient care (21.4%) and dental care (22.6%).
Pro Tip: Understanding the nuances of Germany’s dual healthcare system can definitely help individuals make informed decisions about their insurance coverage.
long-Term Trends: PKV Expenditure Growth Slows
From 2013 to 2023, PKV expenditure per insured person increased by 44.4%, while GKV expenditure rose by 48.2%. This indicates that the expenditure growth rates of the two systems are converging after previous disparities.
| Category | Additional Sales (EUR Billion) |
|---|---|
| Outpatient Medical Care | 7.99 |
| Dental Supply | 3.02 |
| Remedies | 1.10 |
| Pharmaceuticals and Associations | 1.07 |
| Inpatient Care (DRG) | 0.39 |
| Inpatient Care (Elective Services) | 2.01 |
Key Takeaways
- Additional sales from privately insured individuals in Germany’s healthcare system reached €14.46 billion in 2023.
- Outpatient medical care and dental services are the primary drivers of these additional sales.
- Spending on medicines and aids saw a significant increase.
- PKV insured individuals account for a disproportionately high share of healthcare expenditure compared to their population size.
Evergreen Insights: The Evolution of German Healthcare
Germany’s healthcare system has a long history of balancing social solidarity with individual choice. The coexistence of statutory and private health insurance reflects this tension.While GKV provides universal coverage, PKV offers access to possibly better services and faster treatment. The debate over the optimal balance between these two systems continues to shape healthcare policy in Germany.
The increasing costs of healthcare, driven by factors such as an aging population and technological advancements, pose a challenge to both GKV and PKV. Policymakers are exploring various strategies to contain costs while maintaining quality and access to care.
Frequently Asked Questions About Private Health Insurance in Germany
- What are the main advantages of private health insurance (PKV) in Germany?
- PKV often provides faster access to specialists, more comprehensive coverage, and the option for single or double rooms in hospitals.It also allows for higher reimbursement rates for medical services.
- Who is eligible for private health insurance in germany?
- Generally,employees with a gross annual income above a certain threshold,self-employed individuals,and civil servants are eligible for PKV.
- How do the costs of private health insurance compare to statutory health insurance in Germany?
- The costs of PKV depend on factors such as age, health status, and the chosen level of coverage. While PKV can be more expensive for some individuals, it may be more affordable for others, particularly those who are young and healthy.
- what is the role of additional sales in the German healthcare system?
- Additional sales reflect the higher spending by privately insured individuals, contributing to the overall revenue of healthcare providers and potentially supporting innovation and investment in the healthcare sector.
- How does the German healthcare system compare to other countries?
- Germany’s healthcare system is often ranked among the best in the world, offering a high level of quality and access to care. However, it also faces challenges such as rising costs and an aging population, similar to many other developed countries.
- What are the recent trends in private health insurance coverage in Germany?
- While the overall number of privately insured individuals has remained relatively stable, there has been a growing interest in supplementary private insurance to enhance coverage under statutory health insurance.
- How does the German government regulate private health insurance?
- The German government regulates PKV through various laws and regulations to ensure consumer protection and financial stability of the insurance companies.
Disclaimer: This article provides general information about the German healthcare system and private health insurance. It is not intended as financial or medical advice. Consult with a qualified professional for personalized guidance.
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