German Health Spending Rises to €538.2 Billion in 2024

German Health Spending Rises to €538.2 Billion in 2024

German health spending reached €538.2 billion in 2024, the Federal Statistical Office (Destatis) announced on Thursday. That equals €6,444 per citizen and represents a 7.6 percent jump of €37.9 billion from 2023. Health expenditure accounted for 12.4 percent of GDP in 2024, up 0.6 percentage point from the previous year.

By comparison, health spending was €175.3 billion in 1994-roughly €2,161 per person and 9.5 percent of GDP-so the total has more than tripled over the past three decades.

Among the different payers, statutory health insurance is by far the largest contributor, covering 55.9 percent of all health costs. In 2024 it spent €300.8 billion, which is €21.7 billion-or 7.8 percent-higher than in 2023. Private households and non‑profit organisations followed as the second biggest spenders, with €65 billion (12.1 percent) of total health expenditure, a rise of €3.3 billion (5.4 percent). Private health insurers accounted for 8.3 percent of spending, up €3.9 billion (9.7 percent) to €44.8 billion.

Breaking down the spending by facility type, almost half of the total (€259.4 billion or 48.2 percent) went to outpatient settings such as pharmacies and doctors’ practices. Semi‑or‑fully inpatient facilities-including hospitals, inpatient nursing homes, and preventive and rehabilitation centres-spent €197.7 billion, representing 36.7 percent of all health costs. Nearly all categories saw a clear increase from the previous year, except for the “health protection” sector (which includes local health offices, the Robert Koch Institute, and the Federal Institute for Public Health) that fell €1.3 billion (‑18.5 percent) to €5.9 billion, largely because most of the 2023 COVID‑related expenses were absorbed in 2024.

When compared to the pre‑pandemic year 2019, the health protection sector experienced the largest percentage rise of all facility categories-61.5 percent, or €2.2 billion-thanks in part to measures such as the Pact for the Public Health Service aimed at strengthening this area.

The scope of services offered by health facilities extends beyond medical, therapeutic and nursing care. It also includes dental prostheses, medicines and medical aids, as well as accommodation and meals.

Nursing services-including basic, treatment and intensive care provided both outpatient and inpatient-were the single largest expenditure group, accounting for €135.9 billion (25.3 percent). This category grew €14.2 billion (11.6 percent), mainly due to higher hospital nursing staff costs and increased home‑care nursing benefits.

Medicine spending also saw a pronounced upward trend. The expiration of a one‑time higher manufacturer rebate on reimbursable drugs in 2023 led to a €7.2 billion (9.3 percent) rise in 2024, bringing total drug spending to €85.1 billion.

Looking ahead, preliminary projections indicate that health spending in Germany will climb to €579.5 billion in 2025-an increase of €41.3 billion (7.7 percent) over 2024.