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Expenditure of the German statutory health insurance scheme will increase significantly in the future. In order to keep the system financially sound, current law plans to levy income independent surcharges. These will be complemented by a tax-financed social compensation scheme. In this paper, we analyse the effects of such surcharges on revenue on Germany’s statutory health insurance using a general equilibrium model with overlapping generations. Afterwards, we further develop the surcharges up to a flat rate employee contribution and ascertain their financial consequences and their employment and growth effects. The allocative effects of such a further development are positive. They will be more considerable if the introduction begins earlier and ends quickly. A moderate expenditure increase and a smaller shape of the compensation scheme will intensify these effects.

jahrbücher für nationalökonomie und statistik

Zusatzbeiträge in der Gesetzlichen Krankenversicherung / Income-independent Surcharges in German Statutory Health Insurance: Weiterentwicklungsoptionen und ihre finanziellen sowie allokativen Effekte / Development, Financial Consequences and Allocative Effects