In Germany, health insurance is mandatory for everyone, but the system is divided into two classes:
About 90% of the population is insured in the statutory system, while only 10% are insured privately.
Statutory health insurance is based on the principle of solidarity. This means that the services provided to the insured are the same or nearly the same for everyone, but the amount of contributions depends on your income and financial situation.
The private insurance system works differently. Here, you sign a contract with the insurance company and choose which services to include and which to exclude. The cost of insurance directly depends on the range of services and your agreements.
However, not everyone is eligible for private insurance. This right is granted to:
The private insurance system offers more flexibility but also requires careful consideration when choosing services and calculating costs.
The main difference between private and statutory health insurance in Germany lies in the level of services and access to them. Those who have lived in Germany for a while know that getting an appointment with a specialist, such as a cardiologist, can take weeks or even months.
However, if you are insured with a private health insurance company, you can simply call and say: "Ich bin privatversichert", and you will get an appointment relatively quickly. This is because doctors earn significantly more from private patients, making it more advantageous for them to treat such patients.
But the difference doesn’t end there. If you have good private insurance, you typically receive:
If you are insured under the statutory system, a certain percentage is deducted from your monthly salary and directed to the insurance company. Currently, this percentage is 14.6% by law. However, each insurance company is allowed to add an additional contribution (SP), which on average amounts to around 17%.
The amount of the additional contribution can vary from company to company, creating a difference in the total insurance premiums.
This contribution is split equally between you and your employer. For example, you will pay approximately 7-8% of your annual gross salary monthly, and your employer will contribute the same amount in addition to your gross salary.
One of the great advantages of statutory health insurance (GKV) is the possibility of free insurance for your family members. If you are planning or already have a family, this can provide significant financial support.
For example, if you are insured in the statutory system and move to Germany with your spouse, you can insure them for free, provided they are not currently working. The same applies to children — no matter how many you have, you can insure them for free without additional costs.
This is a major benefit for families using statutory health insurance. However, if you are insured in the private system (PKV), you cannot insure your spouse or children for free. Each family member will require a separate insurance premium, which significantly increases costs.
Another advantage of statutory insurance is during parental leave (Elternzeit). During this time, you and your children remain insured for free, even if you temporarily have no income. In the private system, there is no such benefit: you will be required to pay the same premiums as before parental leave, regardless of your current income.
The cost of private insurance depends on several factors: your age, health condition, and the range of services you choose. If you are young, at the start of your career, and currently without a family, private insurance can be more affordable. Typically, such individuals rarely visit the doctor, which helps reduce costs.
However, as soon as you have children or grow older, expenses increase significantly. Children in the private insurance system require separate payments, which can amount to several hundred euros per child per month. Thus, any savings you might have compared to statutory insurance quickly disappear.
Another important factor is the increase in premiums with age. Each year, the cost of private insurance rises, and it is extremely difficult to predict how much you will pay during retirement. There are cases where retirees receive a pension of around 2000 euros but have to spend 1000–1300 euros on private insurance, leaving little for living expenses.
Therefore, for those who have just moved or are planning to move to Germany, I strongly recommend choosing statutory health insurance (GKV) initially. Before switching to the private system, it is important to thoroughly understand its pros and cons and plan a long-term strategy. Remember, this decision is often lifelong: leaving the private system and returning to statutory insurance is extremely difficult.
Before making such an important decision, think carefully and ensure it aligns with your future plans.
Many people find it unfair that private patients in Germany have significantly faster access to specialists compared to those insured under the statutory system. However, after speaking with the chief physician of a German clinic and studying the opinion of the director of a public health insurance company, I came to the following conclusion.
The main reason for the existence of a two-tier system is that doctors earn significantly more money from private clients. This allows them to conduct scientific research, maintain a high level of service in clinics, and ensure the financial stability of the healthcare system as a whole.
If private health insurance were abolished, the German healthcare system would not be able to function at its current level. Without private insurance, the development of medicine would suffer, and the quality of services would decline significantly.
Thus, despite its shortcomings, the two-tier insurance system plays a key role in maintaining the high standard of medicine in Germany.
Statutory health insurance companies in Germany, or gesetzliche Krankenkassen (GKV), may initially seem the same. When I first moved to Germany, a German professor advised me not to worry about choosing one since "they're all the same." However, over time, I realized that this isn't entirely true. In fact, there are significant differences between insurance companies that can impact your budget and the range of services provided.
About 95% of the services offered by insurance companies are indeed identical. However, the remaining 5%, which each company can vary, can make a huge difference. For example, insurance policies may differ in:
These differences can be decisive depending on your needs.
Each insurance company sets its own additional contribution (Zusatzbeitrag), which is added to the base rate of 14.6%. Currently, the difference between the cheapest and the most expensive company is about 3%. For example:
How does this affect your expenses? Let’s take the example of an average programmer in Germany with an annual gross salary of 70,300 euros. If insured with the most expensive company, their contribution will amount to 478 euros per month. With the cheapest company, it would be 401 euros per month. That’s a difference of 77 euros per month or 931 euros per year.
Some insurance companies offer bonus programs. For instance, if you meet certain conditions (regular doctor visits, participation in sports activities, quitting smoking), you can receive a cash bonus at the end of the year. This is a nice addition that can become an additional factor when choosing an insurance company.
Thus, even within the statutory system, the choice of an insurance company can significantly influence your expenses and available services. Take your time when choosing and carefully review what each company offers.
I’d like to share my personal experience. Five years ago, my wife and I decided to switch health insurance companies, moving from Techniker Krankenkasse (TK) to another one. This step allowed us to save about 500 euros per year for both of us just by reducing our monthly contributions.
However, savings on contributions weren’t everything. We chose an insurance company that was the most beneficial for us in terms of services offered. Here’s what we received:
Over 5 years, we saved between 3,000 and 5,000 euros thanks to switching insurance companies. This experience showed us how important it is to choose an insurance company that best meets your needs.
If you’re considering changing your health insurance and want to know how to do it, I recommend checking out the company we’re currently insured with. You can apply to switch via this link.
Switching your statutory health insurance company (GKV) in Germany is a simple and straightforward process. The main advantage of statutory insurance over private insurance is that the new insurance company is required to accept you regardless of your health condition. No additional check-ups or examinations are needed for the transition.
The termination period is 2 months. For example, if you submit your application before January 1, you will be insured with the new company starting from March 1.
If your current insurance company increases its additional contribution (Zusatzbeitrag), you have the right to immediately switch to another company without the two-month waiting period (Sonderkündigungsrecht).
In conclusion, switching your health insurance company in Germany is a process that can be organized quickly and without unnecessary complications.
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