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Out-of-pocket expenditure as percentage of current health expenditure (CHE) (%), 2022: 13.03%

Source: Global Health Observatory. Out-of-pocket expenditure as percentage of current health expenditure (CHE) (%). Geneva: World Health Organization. Last accessed Jan. 23, 2025.

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Domestic private health expenditure (PVT-D) as percentage of current health expenditure (CHE) (%), 2022: 16.05%

Source: Global Health Observatory. Domestic private health expenditure (PVT-D) as percentage of current health expenditure (CHE) (%). Geneva: World Health Organization. Last accessed Jan. 23, 2025.

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Domestic general government health expenditure (GGHE-D) as percentage of current health expenditure (CHE) (%), 2022: 83.95%

Source: Global Health Observatory. Domestic general government health expenditure (GGHE-D) as percentage of current health expenditure (CHE) (%). Geneva: World Health Organization. Last accessed Jan. 23, 2025.

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“Public health expenditure makes up the largest share of current health expenditure (Fig. 3.4). In 2021, public expenditure accounted for 85.2%, which is only slightly lower than neighbouring country Norway (85.6%).

“Growth in health expenditure is contained by a combination of levers, including annual global budgets for regions and municipalities (see Section 2.4), collective purchasing and generic substitution for pharmaceuticals (see Section 2.7.4), and incentives to shift care from inpatient to outpatient settings (see Section 5.4.3).The public sector provides by far the most funding for the health care sector, and hospital care (inpatient and outpatient care provided at hospitals) is responsible for the largest share of total health expenditure as well as publicly funded health care costs (Table 3.2). OOP [Out-Of-Pocket] spending and private insurance fund a minor share of hospital care, but the role varies between specialties – being much bigger in predominantly elective surgical specialties and much smaller in internal medicine. Public health (prevention and health promotion) costs are a small proportion of total health costs, and public health is mainly funded by the public sector, depending on how public health is defined.”

Source: Birk HO, Vrangbæk K, Rudkjøbing A, Krasnik A, Eriksen A, Richardson E, Smith Jervelund S. Denmark: Health system review. Health Systems in Transition, 2024; 26(1): i–152.

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“The state derives most of its revenue from a progressive personal income tax payable on wages and almost all other forms of income, including profits from personally owned businesses, a few other taxes on all personal income and VAT [Value Added Tax]. Earmarked taxes play no role in financing Danish health care. The municipalities derive their revenue from a proportional income tax, proportional land tax and block grants from the state. Formally, each municipality sets its own tax rate. In reality, they are set within limits negotiated with the state. The state and the municipalities fund the regions through a combination of block grants (83% of the revenue in 2021) and performance-based financing (17% in 2021), which is made up of municipal co-payment (16%) and performance-based financing reflecting continuity of care (around 1%) (Danmarks Statistik, 2022a). Approximately 12% of total health care costs are financed through OOP [Out-Of-Pocket] payments, particularly for outpatient medicines, dental services and eye glasses (Table 3.2). Citizens may buy VHI [Voluntary Health Insurance] to share risk and even out OOP payments over time, and employers may buy VHI on behalf of their employees or pay for preventive care. However, employees may have to pay tax on the value of these employment benefits.”

Source: Birk HO, Vrangbæk K, Rudkjøbing A, Krasnik A, Eriksen A, Richardson E, Smith Jervelund S. Denmark: Health system review. Health Systems in Transition, 2024; 26(1): i–152.

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“Financing for the health system is largely devolved to the regions and municipalities which are responsible for funding different services. The regions finance secondary care, prenatal care and community psychiatric units and they contract with GPs, specialists, physiotherapists and dentists who can provide services without a referral (see Section 5.2). The regions decide on the number of providers of GPs and specialists in their region to whom they grant a provider number which the providers need to receive reimbursement. This control of the number of providers assists the regions in their cost-control of the specialists. The regions are also responsible for the reimbursement of outpatient medicines. Medicines administered in hospital are purchased through the joint regional purchaser AMGROS (see Section 2.7.4). The municipalities finance long-term care, home nurses, health visitors, dental care for some groups (such as adults who for physical or mental reasons cannot use the regular dental schemes), prevention and health promotion, drug and alcohol services, and school health services.”

Source: Birk HO, Vrangbæk K, Rudkjøbing A, Krasnik A, Eriksen A, Richardson E, Smith Jervelund S. Denmark: Health system review. Health Systems in Transition, 2024; 26(1): i–152.

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“All Danish residents are automatically covered by the national health system. Financing comes predominantly from state-level general tax revenues and, to a lesser extent, a municipal income tax. The central government allocates block grants to regions and municipalities based on demographics and activity levels. The public share of health spending was 83 % in 2019. This was higher than the EU average (75 %) and has remained relatively stable over the past decade.”

Source: OECD/European Observatory on Health Systems and Policies (2021), Denmark: Country Health Profile 2021, State of Health in the EU, OECD Publishing, Paris/European Observatory on Health Systems and Policies, Brussels.

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“The share of health spending financed out of pocket in Denmark is low, at just 14 % of total health spending in 2019 – slightly lower than the EU average of 15 %. No co-payments are required for primary care visits or inpatient hospital care, including medicines prescribed during the stay, or specialist visits referred by a general practitioner (GP). Co-payments apply to partly covered services including outpatient medicines, dental services and physiotherapy. Although subsidies exist for these services, approximately four in ten Danes purchase complementary health insurance to cover cost-sharing. In addition, nearly one third of Danes hold supplementary health insurance, which provides expanded access to private providers and elective services, most often as a fringe benefit offered by employers. However, voluntary health insurance (VHI) represents only 2.5 % of health spending (see Section 5.2).”

Source: OECD/European Observatory on Health Systems and Policies (2021), Denmark: Country Health Profile 2021, State of Health in the EU, OECD Publishing, Paris/European Observatory on Health Systems and Policies, Brussels.

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World Health Systems Facts is a project of the Real Reporting Foundation. We provide reliable statistics and other data from authoritative sources regarding health systems and policies in the US and sixteen other nations.

Page last updated April 19, 2025 by Doug McVay, Editor.