
Austria's healthcare system is a two-tier, social insurance model, which is often ranked highly by the World Health Organization (WHO). Healthcare in Austria is universal and mandatory, with nearly all residents covered through social health insurance (SHI) funds. Austria's socialized medicine is decentralized and operated with contributions from the federal government and nine states or regions. The system is funded by a mix of general tax revenues and compulsory SHI contributions, with additional funding from out-of-pocket payments. The history of socialized medicine in Austria can be traced back to the Allgemeines Sozialversicherungsgesetz or General Social Insurance Law (ASVG) of 1956, which established healthcare as a right for all.
| Characteristics | Values |
|---|---|
| Year of socialized medicine implementation | 1956 |
| Name of the socialized medicine law | General Social Insurance Law or ASVG |
| Healthcare coverage in 2019 | 99.9% |
| Healthcare spending as a percentage of GDP in 2019 | 10.4% |
| Healthcare spending from public sources as a percentage of the total in 2019 | 75% |
| Healthcare spending from out-of-pocket sources as a percentage of the total in 2016 | 18% |
| Number of hospitals | 277 |
| Number of hospital beds | 64,000+ |
| Number of doctors | 23,000+ |
| Number of healthcare professionals | 86,000 |
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What You'll Learn
- Austria's healthcare system is complex, with federal and regional authorities sharing responsibilities
- Healthcare in Austria is universal and mandatory, with automatic enrollment linked to employment
- The system is funded by a mix of general tax revenues and compulsory social health insurance contributions
- Austria has a two-tier healthcare system, with publicly funded care and optional private insurance
- Austria's healthcare system is decentralized, with federal and state governments contributing to healthcare

Austria's healthcare system is complex, with federal and regional authorities sharing responsibilities
Austria's healthcare system is decentralised and operates with a system similar to United States federalism. The federal government is responsible for the legislative framework, including the regulation of SHI. SHI funds have operational responsibility for ambulatory and rehabilitative care outside hospitals and outpatient medicines, and they negotiate contracts with providers. The nine states or regions also contribute to healthcare, with the states (Länder) regulating hospital care within their jurisdictions, under the framework defined by federal legislation.
The system is funded by a mix of general tax revenues and compulsory SHI contributions, with additional funding from out-of-pocket payments. Income-related SHI contributions account for about 60% of publicly financed health expenditures, while the remaining 40% comes from general taxation. Spending on health from public sources accounted for 75% of the total in 2019, which is below the EU average of 80%. Out-of-pocket spending accounted for nearly 18%, which is above the EU average of 15%.
Austria's healthcare system began in 1956 with the "Allgemeines Sozialversicherungsgesetz" or the General Social Insurance Law (ASVG), which mandated that healthcare is a right. Individuals become eligible and are automatically registered for healthcare upon employment. They are included in the insurance fund, Krankenkasse, which provides an insurance card that covers healthcare, pensions, and unemployment. By 1980, coverage included unrestricted hospital care and preventive check-ups. In 2013, reforms aimed to increase capacity, improve quality, and address fiscal concerns, introducing a budget cap on healthcare expenditure.
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Healthcare in Austria is universal and mandatory, with automatic enrollment linked to employment
Austria's healthcare system is a two-tier, social insurance model. It is funded by a mix of general tax revenues and compulsory social health insurance (SHI) contributions. Income-related SHI contributions make up about 60% of publicly financed health expenditures, while the remaining 40% comes from general taxation.
Austria's healthcare system is complex, with governance divided between federal and regional levels. While healthcare coverage is universal, some out-of-pocket payments are required. In 2019, spending on health from public sources accounted for 75% of the total, which is below the EU average of 80%. Out-of-pocket spending accounted for nearly 18%, which is above the EU average of 15%. Out-of-pocket payments are mainly related to direct spending on outpatient medical care, pharmaceuticals, long-term care, and dental care.
Austria's healthcare system began in 1956 with the "Allgemeines Sozialversicherungsgesetz" or the General Social Insurance Law (ASVG), which mandated that healthcare is a right. Individuals are automatically registered for healthcare upon employment and are included in the insurance fund, Krankenkasse. This fund covers healthcare, pensions, and unemployment. By 1980, coverage included unrestricted hospital care and preventive check-ups. In 2010, the Social Democratic Health Minister Alois Stöger began the process of reform in response to rising healthcare costs and difficulties with capacity.
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The system is funded by a mix of general tax revenues and compulsory social health insurance contributions
Austria's healthcare system is funded by a mix of general tax revenues and compulsory social health insurance (SHI) contributions. Income-related SHI contributions account for about 60% of publicly financed health expenditures, while the remaining 40% comes from general taxation. The federal government is responsible for the legislative framework, including the regulation of SHI. SHI funds have operational responsibility for ambulatory and rehabilitative care outside of hospitals and outpatient medicines, and they negotiate contracts with providers. The states (Länder) regulate hospital care within their jurisdictions, under the framework defined by federal legislation.
Austria's healthcare system is complex, with responsibilities divided between federal and regional authorities. Healthcare coverage is nearly universal, with 99.9% of the population covered through SHI funds in 2019. This high coverage is due to the mandatory nature of health insurance in Austria. Enrollment in the public system is generally automatic and linked to employment, but insurance is also guaranteed for spouses, dependents, pensioners, students, the disabled, and those receiving unemployment benefits. Self-employed individuals are not automatically enrolled but are eligible to enroll in the public insurance scheme.
Austria's two-tier healthcare system, often referred to as a social insurance model, provides publicly funded care for all individuals but also offers the option of supplementary private health insurance. This system is primarily funded by the mix of general tax revenues and SHI contributions, with additional funding from out-of-pocket payments. The system is decentralized and operates with the federal government and nine states or regions contributing to healthcare.
Austria's socialized medicine has one of the most extensive medical infrastructures among countries with similar populations. With less than 10 million people, Austria has 277 hospitals and more than 64,000 beds. They also have a large medical staff, with over 23,000 doctors and approximately 86,000 healthcare professionals. The World Health Organization (WHO) ranked Austria's healthcare system 9th in their mid-2000s international ranking.
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Austria has a two-tier healthcare system, with publicly funded care and optional private insurance
Austria's healthcare system is a two-tier system, often referred to as a social insurance model. This system was developed by the Social Democratic Party of Austria and began in 1956 with the "Allgemeines Sozialversicherungsgesetz" or the General Social Insurance Law. This law mandated that healthcare is a right for all.
The Austrian healthcare system is funded by a mix of general tax revenues and compulsory social health insurance (SHI) contributions. Income-related SHI contributions make up about 60% of publicly financed health expenditures, while the remaining 40% comes from general taxation. The federal government is responsible for the legislative framework, including the regulation of SHI. SHI funds have operational responsibility for ambulatory and rehabilitative care outside hospitals and outpatient medicines, and they negotiate contracts with providers. The states (Länder) regulate hospital care within their jurisdictions, under the framework defined by federal legislation.
Under this two-tier system, all individuals receive publicly funded care, but they can also opt to purchase supplementary private health insurance. Enrollment in the public system is generally automatic and linked to employment, although insurance is also guaranteed for spouses, dependents, pensioners, students, the disabled, and those receiving unemployment benefits. Self-employed individuals are not automatically enrolled but are eligible to enroll in the public insurance scheme. The cost of public insurance is based on income and is unrelated to individual medical history or risk factors.
The Austrian healthcare system is complex, with governance divided between federal and regional levels. It is decentralized and has a relatively high density of hospitals and physicians. In 2011, there were 4.7 physicians per 1000 people, slightly above the European average. In-patient care is emphasized within the system, and Austria has the most acute care discharges per 100 inhabitants in Europe. The average hospital stay is 6.6 days, compared to the EU average of 6 days.
Austria's healthcare system was ranked 9th by the World Health Organization (WHO) in the mid-2000s. In 2015, the cost of healthcare was 11.2% of GDP, the fifth-highest in Europe. Reforms in 2013 aimed to increase capacity, improve care quality, and address fiscal concerns, introducing a budget cap on healthcare expenditure.
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Austria's healthcare system is decentralized, with federal and state governments contributing to healthcare
Austria's healthcare system is decentralized, with the federal government and nine states or regions contributing to healthcare. The system is similar to United States federalism, with each state having legal limitations and roles in their healthcare system. The federal aspect is the Federal Ministry of Labor and Social Affairs, which develops the framework for the services offered and handles the sickness insurance fund, Krankenkasse, which funds Austria's healthcare system. The role of the provinces is to manage and provide care as needed.
Austria's healthcare system is often referred to as a social insurance model. This system provides publicly funded care for all individuals, but also offers the option of supplementary private health insurance. Healthcare in Austria is universal and mandatory, and nearly all residents are covered through social health insurance (SHI) funds. Enrollment in the public system is generally automatic and is linked to employment. The system is funded by a mix of general tax revenues and compulsory SHI contributions. Spending on health from public sources accounted for 75% of the total in 2019, which is below the EU average of 80%. Income-related SHI contributions account for about 60% of publicly financed health expenditures, while the remaining 40% comes from general taxation.
Austria's healthcare system is complex, with governance divided between federal and regional levels. The federal government is responsible for the legislative framework, including the regulation of SHI. SHI funds have operational responsibility for ambulatory and rehabilitative care outside hospitals and outpatient medicines, and they negotiate contracts with providers. The states (Länder) regulate hospital care within their jurisdictions, under the framework defined by federal legislation.
Austria's healthcare system was developed by the Social Democratic Party of Austria in Vienna during its classical 'Red Vienna' period. It began primarily in 1956 with the "Allgemeines Sozialversicherungsgesetz", or the General Social Insurance Law, which mandated that healthcare is a right. Individuals become eligible and are automatically registered for healthcare upon employment. They are included in the Krankenkasse insurance fund, which results in receiving an insurance card that covers healthcare, pensions, and unemployment. The level of coverage rapidly grew since the 1955-1956 ratification of the General Social Insurance Law, and by 1980, it included unrestricted hospital care and preventive check-ups.
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Frequently asked questions
Austria's socialized medicine began in 1956 with the "Allgemeines Sozialversicherungsgesetz" or the General Social Insurance Law (ASVG), which mandated that healthcare is a right.
Austria has a two-tier healthcare system, which is often referred to as a social insurance model. This system provides publicly funded care for all individuals but also offers the option of supplementary private health insurance. Healthcare in Austria is universal and mandatory, with nearly all residents covered through social health insurance (SHI) funds.
The Austrian healthcare system is funded by a mix of general tax revenues and compulsory social health insurance (SHI) contributions. Income-related SHI contributions account for about 60% of publicly financed health expenditures, while the remaining 40% comes from general taxation.































