Rising health care expenses in Germany reach an increase of more than 40% in recent years - Medical expenses in Germany experienced a significant surge, jumping over 40% within a few years.
In Germany, healthcare costs have seen a significant increase over the years, with cardiovascular diseases and musculoskeletal diseases accounting for a substantial portion of these expenses, according to data provided by the Federal Statistical Office in Wiesbaden.
Cardiovascular diseases accounted for 13.1% of healthcare costs, amounting to 64.6 billion euros. Meanwhile, musculoskeletal diseases accounted for 10.1%, or 49.9 billion euros of healthcare costs.
As Germany’s population ages, medical costs particularly rise for older age groups, who require more intensive and frequent care. The aging population imposes significant pressure on the statutory health insurance system, which lacks aging provisions unlike private insurance. Projected demographic changes will likely drive substantial increases in public health insurance contributions.
Among the age groups, the 65 and over population had the highest costs per capita at 14,070 euros, accounting for more than half of the total costs at 261.8 billion euros. Interestingly, the lowest costs per capita were among those aged 15 to 29, at 2,270 euros per capita. Among the very elderly aged over 85, costs per capita were 28,860 euros.
So-called neoplasms, which include cancer, accounted for 9.7% or 47.6 billion euros of healthcare costs. Mental and behavioral disorders accounted for 12.9% of healthcare costs, amounting to 63.3 billion euros. Diseases of the digestive system were the third-highest cost, accounting for 10.3% or 50.6 billion euros.
Healthcare spending has grown to comprise a substantial share of Germany’s GDP, reaching around 11.5% in recent years, reflecting increasing demand and complexity of care, especially related to chronic and age-associated illnesses. Pharmaceutical expenses have been a significant cost driver, with medication expenditures nearly half as large as hospital sector costs.
Policy reforms have sought to balance cost control with protection for vulnerable patients. Cost-sharing schemes and out-of-pocket (OOP) limits have been implemented to protect patients, with caps at 2% of income (1% for severe chronic diseases), and exemptions for children under 18. However, changes like increased co-payments introduced in 2004 were later partially reversed, for example, co-payments for physician visits were discontinued in 2013, which helped reduce average growth in OOP costs.
Despite these efforts, the statutory health insurance faced a deficit of €6.2 billion in 2024 amid revenues of €320.6 billion and expenditures exceeding this, signaling fiscal strains linked to rising healthcare utilization and costs. Long-term sustainability remains a challenge due to projected demographic shifts.
In summary, the Federal Statistical Office data and related analyses outline that costly diseases primarily afflicting the elderly and demographic aging trends are central factors driving up Germany's healthcare costs over time. Policy reforms have sought to balance cost control with protection for vulnerable patients, but long-term sustainability remains a challenge due to projected demographic shifts.
The community must actively participate in discussions surrounding health policy reforms, considering the significant role chronic and age-associated illnesses play in driving up healthcare costs. Emphasis should be placed on science-based, evidence-linked health policies to manage medical-conditions such as cardiovascular health, neoplasms, and digestive system diseases, which account for a substantial portion of healthcare costs in Germany. Health-and-wellness initiatives, particularly focused on the elderly, can also contribute to easing the burden on the statutory health insurance system and improving overall population health.
