>German Health Care System is a famous model that is most widely imitated throughout the world.However，as German economic growth slows down，aging of population deteriorates and globalization impinges，the systematic problems of financing，social solidarity and efficiency of health care provider gradually emerge.Reform on health care system seems inevitable and becomes the stress of economic and social reforms implemented by the Merkel government.But there remains broad controversy on how to reform it.Based on the introduction to the status quo and basic structure of German Health Care System，the paper analyzes the background of the health care reform carried out by the Merkel government，different reform protocols proposed by separate parties and different notions underlying each protocol.The paper also comments on the main contents of the finally act “Health Care Reform 2007”，and points out the validity of this reform which uses competition enhancement as the main instrument，involves unprecedented broad fields and is oriented by multiple objectives.However，as an act enabled by coalition and compromises，the finally consequences of its implementation is unforeseen and may not be favorable.