GERMAN HEALTHCARE REFORM CAUGHT IN POLITICAL CRISIS

It is reported that negotiations between German political parties SPD and the CDU, which have created a new coalition government, have impacted Germany's plans for healthcare reform. The CDU has reportedly abandoned proposals to introduce a health premium, a policy opposed by SPD, the previous major governing party.

The aim of the CDU's health premium was to remove the link between health fund financing from national wage and salary performance. Meanwhile, the SPD is calling for a national health insurance policy that allows for universal private provision.

Under the new plans, private medical services will be available under the same conditions as those offered by the public sector. The overall aim is to provide the German public with more choice regarding health provision, as well as to cut spiralling state spending on healthcare. However, without greater flexibility on individual choice, the government may find problems sharing costs on expensive hi-tech therapies.