The system of risk equalization payments among German Statutory Sickness Funds is currently under intensive political debate. While some participants claim that the enormous size of the equalization payments are detrimental to effective competition among funds, others argue that there are still...

Recently, the system of financing German sickness funds through payroll taxes has been criticized, and several experts have proposed a transition to uniform per-capita contributions as in the Swiss Social Health Insurance. However, the ongoing debate on these questions suffers from a certain...