it is not 100% state-controlled. A lot of the fees and cost are indeed state-controlled as in set by the state, but the actual insurance companies, clinics, etc are private.
It is a little bit more complicated:
The budget of the "gesetzliche Krankenkasse" is set by the gouvernment. So yes, it is not owned by the state, but in reality it is completely controlled by the state. There are, however, private insurance companies in germany which are free to do what they want. Everybody under a certain salary limit has to be insured by the "gesetzliche" and only if they earn more than a certain amount they can leave it and have a private insurance or none at all. There are many discussions whether this system should be changed to a state onwed only system, because it would be more efficient.