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Kapitaldeckung in der Gesetzlichen Krankenversicherung: Wer bezahlt den Übergang? / Funding Social Health Insurance: Who Pays for the Transition?

Author

Listed:
  • Felder Stefan

    (Institut für Sozialmedizin und Gesundheitsökonomie, Leipziger Str. 44, 39120 Magdeburg, Germany)

  • Fetzer Stefan

    (Wissenschaftlicher Beirat der Betrieblichen Krankenversicherung, Kronprinzenstraße 5-7, 45128 Essen, Germany)

Abstract

The double ageing of the population leads to income redistribution from future to present generations as net payments to social health insurance are negative at young age and positive at old age. Economists arguing in favour of flat health insurance premiums combined with ageing provisions often neglect the transition from the pay-as-you-go to funded system. Using a generational accounting approach we analyze a reform to funded premiums, taking into account the transition. Furthermore, we implement a tax-transfer scheme designed to protect low income persons facing higher payments in the premium scheme.Our calculations reveal that under the current pay-as-you-go system German social health insurance burdens future generations by almost 30 percent of GDP. Funding could reduce this burden to 5 percent of GDP but would involve higher payments up to 700 Euro p.a. for the present generations. A delay of the reform would increase the burden for future generations again and benefit baby boomers born before 1970. We conclude from a public-choice perspective that it will be difficult to implement even a delayed reform to a more funded health insurance system.

Suggested Citation

  • Felder Stefan & Fetzer Stefan, 2007. "Kapitaldeckung in der Gesetzlichen Krankenversicherung: Wer bezahlt den Übergang? / Funding Social Health Insurance: Who Pays for the Transition?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 227(5-6), pages 603-620, October.
    • Handle: RePEc:jns:jbstat:v:227:y:2007:i:5-6:p:603-620
    DOI: 10.1515/jbnst-2007-5-612
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    References listed on IDEAS

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    1. Stefan Fetzer & Stefan Moog, 2021. "Indicators for Measuring Intergenerational Fairness of Social Security Systems—The Case of the German Social Health Insurance," Sustainability, MDPI, vol. 13(10), pages 1-18, May.
    2. Henke Klaus Dirk, 2007. "Zur Dualität von GKV und PKV / The Future of Private and Public Health Insurance in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 227(5-6), pages 502-528, October.

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