Germany’s state financing of healthcare expenditures decreased significantly in 2023, a shift largely attributed to the winding down of pandemic-related measures. According to data released by the Federal Statistical Office (Destatis), state contributions totaled approximately €75.7 billion, representing 15.4% of Germany’s total current healthcare expenditure of €491.6 billion. This figure marks a reduction of €34.1 billion, or 31.1%, compared to 2022.
The state’s share of funding, encompassing transfers and subsidies, has now returned to a level comparable to pre-pandemic levels (2019: 14.4%), after peaking at 22.3% in 2022. Healthcare funding in Germany is distributed across various entities, including the state, businesses, private households and private non-profit organizations.
Conversely, financing contributions from private households and businesses experienced a noticeable increase. Private households contributed €262.5 billion, a rise of €19.4 billion, or 8%. Business contributions climbed to €150.2 billion, reflecting a €13.9 billion increase, or 10.2%. These increases are directly linked to a general rise in healthcare expenses across all funding sources, excluding public budgets.
The share of funding from private households increased from 49.4% to 53.4%, while the share from businesses rose from 27.7% to 30.6%. Private non-profit organizations saw a slight increase, rising from 0.6% to 0.7% of total funding. Notably, private households now finance over half of Germany’s current healthcare expenditure.
Within the €262.5 billion contributed by private households, employee social security contributions amounted to €124.9 billion, representing nearly half the total. “Other domestic income” encompassing expenses for outpatient and inpatient care and the purchase of over-the-counter medications, accounted for €55.1 billion. This represents an increase of €3 billion (+5.8%) in this category.
For businesses, 85.1% of the €150.2 billion contributed to healthcare funding was attributable to employer social security contributions. This contribution rose by €11.3 billion, reaching €127.8 billion (+9.7%).
The state’s €75.7 billion contribution was predominantly allocated to transfers and subsidies, accounting for approximately €69 billion, or 91% of the total financing contributions.
Private non-profit organizations also increased their contribution, financing €3.2 billion worth of health-related services, a 5.6% increase over 2022, funded entirely from their own resources.