How Does Health Insurance Work in Germany?

In Germany, there are two main types of health insurance, provided by over 100 companies (known as Krankenkassen). Health insurance is mandatory, and you must choose one of these options, although in some cases, it is possible to combine both. Here's a breakdown of the two systems:

Public Health Insurance (Gesetzliche Krankenversicherung, GKV)

Public Health Insurance is available to all residents who earn below €69,300 annually (as of 2024). If you earn less than this threshold, GKV is your only option. It covers a wide range of treatments and services, and family members (such as spouses and children) can be included at no additional cost. The contribution rate is 14.6% of your gross annual salary, with the cost shared equally between you and your employer. However, it’s important to verify whether specific hospitals or doctors accept GKV coverage.

Private Health Insurance (Private Krankenversicherung, PKV)

Private Health Insurance is available to those who earn above €69,300 annually or are self-employed. PKV offers higher-quality service, including more comprehensive treatments, private or semi-private hospital rooms, and faster access to specialists. Some benefits of private insurance include:

• Broader medication options
• Less crowded hospital rooms
• Faster access to medical specialists
• More flexibility in coverage choices

However, there are some potential downsides to consider:

• Premiums may rise with age and declining health
• Reimbursement claims must be filed directly with the insurer, often requiring forms in German (although The Eye Newspapers promotes English-friendly insurers)
• Dependents are not automatically covered
• Some doctors might over-prescribe medication, knowing that PKV will cover extra costs

PKV is generally better for high earners, singles, or those seeking more privacy and quicker medical services. Additionally, PKV offers more extensive international coverage compared to GKV.