European jurisprudence give citizens of European Union (EU) member states the right to seek medical treatment within the Single Market. In 2004, Germany sanctioned the reimbursement of medical bills of German patients who seek out-patient care within the EU by sickness funds even without their prior authorization. OBJECTIVES: To evaluate the impact of choice of provider abroad on the German healthcare system as provided for under the Statutory Health Insurance Modernization Act in the context of the sustainability in financing healthcare. METHODS: Policy analysis of the legislation was carried out and semi-structured interviews of key stakeholders in the German health care system, including federal associations of sickness funds, experts from academia, patient groups and providers were conducted. CONCLUSION: The easing of access to foreign providers engenders greater satisfaction among patients and has the potential to improve quality of care at home via competition among providers at the source country. Given the crucial safeguards attached to seeking care abroad as in the case in Germany, the exercise of choice of foreign provider need not be harmful to the sustainability of the financing of the health care system.