An overview is given on how the German health care system is financed, on the 'concerted action approach to health care' and on the long-term perspectives of the statutory sickness fund system as the very heart of the financing system. In all three parts the effects of different ways of financing on the allocation of health care resources and their distributional effects are dealt with. As the concerted action appears as a 'third way' between a pro-competition strategy and a governmental approach to health care and differs from the way other countries organize the allocation of health care resources it is given special emphasis.