Monday, November 23, 2009

Germany Strains to Fund Health Care for All - WSJ.com

Germany Strains to Fund Health Care for All - WSJ.com: "BERLIN -- Germany's century-old universal health-care system, a model cited by reform advocates in the U.S. Congress, is buckling under the weight of a growing deficit that has forced the government to explore an overhaul.

Created by Bismarck in 1883, the world's oldest publicly sponsored health-care system continues to operate on the basic premise of its founding: Everyone is obliged to pay into the system and all who need care can get it. Costs are shared between employers and workers, whose premiums are staggered according to income.

Recently, however, the costs of the system have exploded. Rising medical costs and unemployment will leave the system €7.5 billion ($11.1 billion) short next year. Germany's sinking birth rate and rapidly aging population mean the gap will only get worse."

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