Public and private health insurance in Germany: how to chose?

Health insurance (Krankenversicherung) in Germany is not free, but it's mandatory. If you stay in Germany for more than 90 days, you must have health insurance¹. In this guide, we explain the difference between public health insurance (gesetzliche Krankenversicherung) and private health insurance (private Krankenversicherung). We also explain which one is better for you.

This guide was verified by 6 separate health insurance brokers. Special thanks to Rob from Feather, who answered my questions for several hours.

What are your options?

Germany has a multi-payer healthcare system. There are hundreds of private and public health insurance companies. You can choose any of them. This is different from the UK, Canada, Australia, France, Sweden, Norway and Finland.

Your health insurance is not tied to your employer. Your employer does not decide which insurance you have. If you lose your job, you do not lose your health insurance. This is different from health insurance in the United States.

Your insurance options depend on your income and your job status. Some people can choose public or private health insurance. Other people can only choose public health insurance.

There are two possible statuses:

• Compulsorily insured (Pflichtversichert)
  Employees who make less than 62550€ per year are compulsorily insured (Pflichtversichert). They can only choose public health insurance. Public health insurers are forced to accept them¹.
• Voluntarily insured (freiwillig versichert)
  Freelancers, students, people with minijobs and employees who make over 62550€ per year are voluntarily insured (freiwillig versichert). They must have health insurance, but they can choose public or private health insurance. Public health insurers are not forced to accept them.

Those people are voluntarily insured^{1, 2}:

• Students
• Freelancers
• Doctors
• Civil servants
• People with a single minijob¹

Public health insurance

Around 90% of German residents have public health insurance (gesetzliche Krankenversicherung or GKV)^{1, 2}. It's also called statutory health insurance. Public insurers are non-profit companies. They are also called sickness funds (Krankenkassen).

The public system in Germany is different from the public system in the UK, Canada, Australia, France, Sweden, Norway or Finland. You have more than one health insurance option. You can chose any Krankenkasse for your health insurance.

Cost of public health insurance

The cost of public health insurance depends on your income. You pay 14.6% to 15.6% of your income every month¹. If you make more money, your health insurance becomes more expensive. If you make more than 56250€ per year, the cost of health insurance stops going up. You just pay the maximum amount.

• If you are an employee, you pay half of your monthly contributions (7.3% to 8.3% of your income). Your employer pays the other half¹. The amount is taken directly from your paycheque every month.
  • If you make more than 56250€ per year, you will pay around 400€ per month¹. Even if your salary goes up, you won't pay more than that¹. This is the maximum contribution (Höchstbeitrag).
  • If you are unemployed¹, you will pay around 180€ per month¹. This is the minimum contribution (Mindestbeitrag). If your spouse or your parents have public health insurance, you can use their insurance for free. After you register as unemployed, the government pays your health insurance for you^{1, 2}.
  • If you have a minijob, you still need health insurance. If your spouse or your parents have public health insurance, you can use their insurance for free. If not, you will pay the minimum contribution (Mindestbeitrag): around 180€ per month¹. Use this calculator to estimate the cost.
  • If you are an Azubi, you are treated like an employee. You pay 7.3% to 8.3% of your income. There is no minimum contribution. If you make less than 325€ per month, your employer must pay your health insurance¹.
• If you are a student under 25 years old, you will pay even less: around 104€ per month^{1, 2, 3, 4}. If you are a EU citizen, you can use your EHIC card. If you make less than 450€ per month, you can also use your parents' public health insurance for free¹.
• If you are a student between 25 and 30 years old, you will pay around 104€ per month^{1, 2, 3, 4}. If you are a EU citizen, you can use your EHIC card. If you are over 25 years old, you can't use your parents' health insurance¹.
• If you are a student over 30 years old, you will pay around 180€ per month^{1, 2}. This is the minimum contribution (Mindestbeitrag). You do not get a special student price anymore. If you just moved to Germany, you might be forced to get private health insurance. Public health insurers can refuse to cover you.
• If you are a freelancer, you pay 14.6 to 15.6% of your income¹. The amount is taken directly from your bank account every month.
  • If you make more than 56250€ per year, you will pay around 845€ per month. This is the maximum amount for freelancers (Selbstständige Höchstbeitrag)¹. Even if your income goes up, you won't pay more than that¹.
  • If you make less than 12 740€ per year, you will pay around 180€ per month^{1, 2}. This is the minimum amount for freelancers (Selbstständige Mindestbeitrag) in 2020. If your spouse or your parents have public health insurance, you can use their insurance for free.

If you are a freelancer, the cost is based on your estimated income. If you paid too much, you will get a refund later. If you did not pay enough, you will have to pay more later.

Useful links:

• Health insurance calculator (Techniker Krankenkasse)
• Health insurance calculator (AOK)
• Health insurance calculator for Minijobs (Techniker Krankenkasse)
• Minimum and maximum contributions for freelancers (in German)

Benefits of public health insurance

• Public is cheaper when you're old
  Public health insurance is based on your income. If you lose your job or retire, you will pay less for your insurance. When you are old, public health insurance will be much cheaper than private health insurance. If you are over 45 years old, public insurance is almost always the best option.
• Public is cheaper for students under 30 years old
  Students pay around 104€ per month¹ until they are 30 years old. When they turn 30, they pay the Mindestbeitrag: around 180€ per month¹.
• It covers your dependents for free
  Public health insurance covers your children and your unemployed spouse. This is called the Familienversicherung. If your spouse only has a minijob, (s)he is covered by your insurance¹. If you plan to have children, public health insurance is a better choice¹.
• It matches your income
  Public health insurance is cheaper when you make less money. If you lose your job or retire, public insurance will remain affordable. Private insurance will get more and more expensive, even if you become unemployed.
• It requires less paperwork
  Public health insurance is simple. The doctors and the insurance companies talk directly to each other, so there is less paperwork to do. The price won't change as you get older. When you go to the doctor, you just show your insurance card and you're done. You don't need to worry about price changes, coverage, reimbursement or deductibles.
• You don't pay more for preexisting conditions
  If you are Pflichtversichert, public health insurers can't refuse to cover you. Even if you have health problems, you will not have to pay more for your insurance.

Disadvantages of public health insurance

• Public is expensive for young professionals
  Public insurance is based on your income, and private insurance is based on your health. If you are young, healthy and have a good income, public will be much more expensive than private.
• You don't get the best treatment
  Doctors make a lot more money from private patients, so they often treat private patients first¹. With private insurance, you will get an appointment the next day, instead of in two weeks. It's also very difficult to find a psychotherapist or urologist who accepts public health insurance^{1, 2}. You still get good treatment, but not the best treatment.
• Special treatments are not included
  If you want special treatments, you will need to pay the extra cost yourself. When I had my wisdom teeth removed, my insurance only paid for local anaesthesia. General anaesthesia was more expensive, so I had to pay the difference myself. Private insurance lets you choose the quality of your coverage.
• It's not available for everyone
  If you are a freelancer who just moved from a non-EU country to Germany, it's almost impossible get public health insurance. Public insurance companies are not forced to cover freelancers¹. Most expat freelancers are forced to choose private health insurance because of this.

Which public health insurance should I choose?

Public health insurance companies (Krankenkassen) have very similar prices and coverage¹. The biggest difference between companies is customer service¹.

Rob from Feather says "as an expat, Techniker Krankenkasse is a no-brainer, by a long way." TK is very popular among expats, because it offers support in English. I have been with TK since 2015, and I am very satisfied. AOK is another very popular public option. DAK and Barmer are two other major public health insurers.

If you don't know which health insurance to pick, you should ask a health insurance broker. Their help is free. They get paid by the insurance companies when they bring new customers.

Useful links:

• An honest review of Techniker Krankenkasse
• Sign up with Techniker Krankenkasse
• Sign up with AOK

Private health insurance

Around 10% of German residents have private health insurance¹. You can only have private insurance if you are voluntarily insured (freiwillig versichert).

Cost of private health insurance

The cost of private health insurance (private Krankenversicherung or PKV) depends on your age and your health. The older you get, the more expensive it gets. It will be cheaper than public health insurance when you are young, but much more expensive when you get old.

Employees only pay half of their monthly contributions. Their employers pay the other half. Freelancers must pay the monthly contribution themselves¹. This is why health insurance seems so expensive for freelancers.

• Private is cheap when you are young
  A healthy 25 years old man could pay as little as 175€ per month (350€ for freelancers) for private insurance. If you make a good salary, this is much cheaper than public insurance. If you join the private system when you are young, it will be a bit cheaper when you are old.
• Private is very expensive when you are old
  When you get old, you could pay 1500€ per month for the same insurance! This is a lot of money if you are retired. Your income goes down, but your insurance keeps getting more expensive¹. This can easily bankrupt you^{1, 2}. If you are over 45 years old, private insurance is rarely worth it. After 55 years old, it's almost impossible to go back to public health insurance.
• Private is expensive if you have health problems
  You must take a health test before you get private health insurance. If you have any health issues that need constant treatment, your insurance will be much more expensive. If you have pre-existing conditions, they will often refuse to cover you¹. This includes chronic diseases, psychotherapy or expensive medication, for example.
• You choose what you need
  You can choose dental coverage, travel insurance, special treatment etc. If you choose more options, your insurance will be more expensive. If you choose fewer options, it can be very cheap.
• You pay less with a higher deductible
  For example, if you have a 3000€/year deductible, you pay the first 3000€ in medical fees yourself, and your insurance pays everything after that. When you have a high deductible, you pay less in insurance every month. If you never go to the doctor, that's a good way to save money.

Who can have private health insurance?

Private health insurance is only an option if you are voluntarily insured (freiwillig versichert).

• If you are a freelancer, you can always choose private insurance. There is no minimum income. If you are a non-EU freelancer who just moved to Germany, private health insurance might be your only option.
• If you are an employee and earn more than 62550€ per year (in 2020, before taxes), you can choose private health insurance. Your employer will pay half of your monthly contributions.
• If you are an employee and earn less than 62550€ per year (in 2020), you can't be privately insured. You must have public health insurance. You can't choose private health insurance.
• If you are a student, a doctor or a civil servant, you can choose private health insurance. If you are a student over 30 years old, private health insurance can be cheaper than public health insurance. Private health insurers offer special rates for students.

Which private health insurance should I choose?

There are big differences between private health insurance companies. Each insurer offers different options, and the best option depends on your situation.

The best way to choose private health insurance is to ask a health insurance broker. Their help is free. They get paid by the insurance companies when they bring new customers.

Use Tarifcheck to compare private health insurance prices. You enter some information about you, and you get many insurance options and their cost.

Rob from Feather says that Allianz is a very well organised internally. They handle claims efficiently, so they can offer slightly lower prices. He added that some insurance companies offer some special deals for certain professions. HanseMerkur is also popular with expat freelancers.

Ottonova is a popular option for expats because they offer support in English, but they have their issues.

Useful links:

• Private health insurance comparator (in German)

Travel insurance

Travel insurance covers you for a few weeks when you visit Germany. It only covers medical emergencies, and treatments that can't wait until you return home. It does not cover long term treatments, health checkups or preexisting conditions.

Travel insurance is enough to get a tourist visa, but it is not enough to get a German residence permit.

Expat health insurance

Expat health insurance covers you for up to 5 years. It's much better than travel insurance, but not as good as public or private health insurance.

There are two reasons to get expat health insurance:

• You plan to live in Germany for less than 5 years
• or you are applying for a German residence permit for the first time. Expat insurance is easier to get than public or private health insurance.

Expat insurance has a few disadvantages compared to public and private health insurance:

• Expat insurance is a temporary insurance. It's only valid for up to 5 years. If you settle in Germany, switch to real health insurance as soon as possible. Many freelancers stay on expat insurance for too long. When they need to renew their visa, no insurer wants to cover them. They can't get health insurance, so they can't renew their visa¹.
  
• Expat insurance is not accepted when you renew a residence permit¹, or change to another residence permit. You must have public or private health insurance to renew a residence permit.
• You usually pay a deductible for basic treatments. Simple checkups and dentist visits are rarely covered. However, long term treatments are 100% covered.

Useful links:

• Which health insurance do you need for your German visa?
• Feather expat insurance - from 72€ per month, valid for visa applications¹
• Ottonova expat insurance - valid for visa applications

Insurance from other EU countries

If you stay temporarily in Germany, you can use your EHIC card. This proves that your health insurance back home covers healthcare in Germany.

If you are an Erasmus student from another EU country, the EHIC card is enough^{1, 2}. You can use your EHIC card even if you study in Germany for your entire degree¹.

Once you start working in Germany, your EHIC card does not cover you anymore. You must get a German health insurance.

The EHIC card is only available to European Union citizens. Read more about it here.

The Künstlersozialkasse (KSK)

The Künstlersozialkasse (KSK) allows freelance artists to save money on health insurance. When you are on the KSK, the state acts as your employer, and pays 50% of your health insurance contributions. If you qualify, it can save you a lot of money!

Applying for the KSK is a long, difficult process. They ask a lot of questions and require many documents. It can take up to 6 months. Staying into the KSK also takes a lot of effort. You must prove that you still qualify every year.

Insurance brokers

Insurance brokers can help you pick the best health insurance, but you still need to do your research first. Only insurance brokers can recommend health insurance companies.

Before you see a broker, understand the difference between public and private insurance. Only a few brokers specialise in public and private health insurance. Many only sell private health insurance, because it pays more.

Always look for independent insurance brokers. Don't choose brokers who work for a single insurance company. They will recommend this company even when it's not the right one for you.

How do insurance brokers get paid?

When you sign a public health insurance contract, the broker will get a commission between 0 and 90€. When you sign a private health insurance contact, the broker's commission is around 9 times your monthly payment. This means they can make above 5000€ in commissions for private insurance. They also receive money every year for "holding" your contract.

Many brokers only sell private insurance, because it makes them much more money.

Switching from private to public health insurance

Switching from private to public health insurance can be extremely hard, and sometimes impossible^{1, 2}. If you are Pflichtversichert, public health insurers are not forced to accept you.

If you are over 55 years old, you can't switch to public insurance anymore¹. It's almost impossible¹. Otherwise, people would have private health insurance when it's cheaper, and switch to public health insurance when they are old. Public health insurance companies would go bankrupt!

One way to switch to from private to public insurance is to reduce your income and become Pflichtversichert again. Once your income is below 62550€^{in 2020}, you are forced to use public health insurance. This does not work for freelancers, because they are never Pflichtversichert^{1, 2}. They would have to become employees again, then use that technique.

Need help?

Health insurance brokers help you find the best health insurance for your situation. Only brokers can give health insurance recommendations.

I trust Feather and B-Protected. They helped me write this guide and helped many of my readers find health insurance. Rob from Feather helped me switch to private insurance and save over 500€ per month. Both Feather and B-Protected and have a lot of experience with expats. To compare health insurance prices, you can also use Tarifcheck.