Health care über alles: how it works in Germany

The German healthcare financing system combines regulated, employment-based "sickness funds" for most workers and private insurance available to those above an income threshold. Costs are paid on a fee-for-service basis to private physicians and at an all-inclusive per diem rate to hospitals. Workers and their employers contribute to sickness funds at a percentage of their earnings. The German government sets regulations by which services are provided but does not actively administer either services or payment.