What Redistribution Effects are Covered by the Solidarity Principle in the Statutory Health Insurance System?
IW-Trends
German Economic Institute (IW)
Demographic transformation is taking to absurd lengths the risk equalisation between young and old incorporated into Germany’s statutory health insurance system. Despite increasing average expenditure on benefits, the solidarity principle is being upheld for a cross-section of the insured in any given period. In the long term, however, each succeeding cohort is having to bear a heavier burden. A similar situation applies to the risk equalisation between the productive and the less productive insured. To ensure that inter- and intragenerational solidarity is maintained as well, it is essential that the pay-as-you-go system is combined with an appropriate form of capital funding.
Susanna Kochskämper / Jochen Pimpertz: Welche Umverteilungseffekte deckt das Solidaritätsprinzip in der GKV ab?
IW-Trends
German Economic Institute (IW)
Abolition of the Additional Earnings Limit
The ageing population in Germany is increasing pressure on the social insurance systems and will (in the future) exacerbate the shortage of skilled labour.
IW
The Reform of Old-Age Pension Systems in Germany
Concerns about the risk of poverty in old age have prompted a multitude of reform proposals, most of which aim to introduce additional redistributive elements into Germany’s statutory pension scheme.
IW