German Cabinet approves health reforms

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BERLIN, Oct. 25 (UPI) -- The Cabinet of German Chancellor Angela Merkel approved a controversial, sweeping healthcare reform package Wednesday.

The reforms, passed earlier this month, include the establishment of a central pool for insurance contributions from worker salaries and a provision that allows insurers low on cash to impose additional levies, according to German newspaper Deutschewelle.

The lengthy negotiating process for the reforms has taken a chunk out of the popularity of the nearly 1-year-old coalition of longtime political rivals headed by Chancellor Angela Merkel's Christian Democrats, and German newspapers are predicting a difficult sell for final passage of the bill.

Germany's healthcare system is one of the most expensive in the world, with a price tag of about $178 billion. Only the United States and Switzerland spend more per person, and, much like in the United States, it has had difficulty keeping up with the costs of an aging population. This year alone it faces a $7 billion deficit.