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The costs, the amount of the contributions, in the private health insurance in Germany depend on various factors: The age at the conclusion of the contract, the state of health and the desired benefits. Also the deductible and provisions for age play a role in the amount of contributions. This article provides information on how high the premium per month in German health insurance can be, how it differs between public or private health insurance and how much savings potential there is.
Reviewed by our insurance experts
Inhaltsverzeichnis
Summary
- The cost of private health insurance (PKV) in Germany varies depending on the age at entry, the desired scope of benefits, any deductible, and potential risk surcharges for pre-existing conditions. The professional group (employees, self-employed, civil servants) and the number of family members co-insured also influence the premiums.
- Employees receive a subsidy from their employer. Self-employed individuals pay the full premium without an employer subsidy, which is higher for a similar scope of benefits.
- Children must be insured separately, with premiums depending on the selected benefits and deductible. Private health insurance offers the possibility of lowering premiums in old age and guarantees comprehensive healthcare through the equivalence principle, which is based on age reserves.
How much does private health insurance in Germany cost per month?
The cost of the contributions in the private health insurance depend on different factors and differ from private health insurance companies. While in the public (or statutory) health insurance only the income is taken as a reference value, the entry age, the desired scope of services, a possible deductible and, in the case of pre-existing conditions, a possible risk surcharge determine the amount of the premium for private health insurance.
When calculating premiums, a distinction must also be made between employees, the self-employed, civil servants and family members.
In the statutory health insurance, spouses and children are included in the family insurance free of charge, as long as they do not have their own income. In private health insurance, this does not matter. A separate contract is required for each insured person.
How much does an employee pay in private health insurance?
ottonova's private health insurance offers three coverage options for salaried employees, each with a different scope of benefits: the Premium Economy, Business Class and First Class tariff.
The monthly premium differs depending on the private health insurance plan selected.
Example calculation for salaried employees in private health insurance
Let's assume that the applicant is 35 years old at the start of the insurance and has no pre-existing conditions. Based on our information, the following premium per month for private health insurance (German short: PKV)* results:
Basic contribution: | 487,91 Euro |
Daily sickness allowance: | 48,72 Euro |
Premium relief in old age: | 60,02 Euro |
Long-term care insurance: | 48,15 Euro |
Total contribution: | 644,80 Euro |
As an employee living in Germany your employer pays a contribution to your health insurance. After deducting the employer's contribution of 322.41 euros, the total amount is 322.39 euros per month.
*The sample calculation is based on the ottonova Business Class 100 tariff most frequently chosen by salaried employees.
Is private health insurance for employees cheaper than public health insurance?
The monthly co-payment for German public (or statutory) health insurance for salaried employees at this income level is euros. Salaried employees can save up to3.100 euros premium per year with private health insurance compared to the health insurance cost with a public health insurance insurance.
Is private health insurance worth it for you?
If your salary is over the annual income limit, it might make sense for you to change your health insurance. Next to saving money you can also benefit from various advantages, like:
- Tariffs are tailored to the needs of different occupational groups.
- Tariffs can be customized: The chosen tariff can be customized with additional modules to meet your own requirements and wishes.
- Preferred treatment:With private health insurance you benefitfrom the most advanced treatments and shorter waiting times at the doctor's office. ottonova also offers an appointment service, meaning we book and organize your doctor's appointments for you.
- Contractually agreed benefits: Benefits are not eliminated in old age, whereas this can be the case with statutory health insurance. With ottonova, there are also no tariff-based price/benefit schedules, i.e. no hidden benefit reductions in the event of treatment.
Check out our health insurance tariffsCheck out our special expat tariff
How much does private health insurance for the self-employed cost?
If you are self-employed the contribution is the same as for salaried employees, with the difference that there is no employer's contribution here, which is deducted from the monthly contribution costs.
Example calculation for self-employed in private German health insurance
Let's stick to the figures of the calculation example of the employed person and adopt them one-to-one to a potential freelancer:
Basic contribution: | 487,91 Euro |
Daily sickness benefit: | 48,72 Euro |
Premium relief in old age: | 60,02 Euro |
Long-term care insurance: | 48,15 Euro |
Total contribution: | 644,80 Euro |
The amount of the daily sickness allowance depends in Germany on how many employees the self-employed person has.
However, it is also possible with some insurers in private health insurance oif you are self-employed to take out a daily sickness allowance from the first day of illness. However, the recommendations speak against it due to the high costs.
To keep the private health insurance premium as low as possible, many self-employed persons opt for a relatively high personal contribution in private German health insurance.
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What is the cost of private health insurance for a child in Germany?
The contribution for the child amounts to 161.50 euros per month, adjusted for the employer's contribution of 50 percent only 80.75 euros. The annual savings compared to statutory health insurance for salaried employees in this example is still 954.84 with a significantly better price-performance ratio.
In addition: the contribution for a daily sickness allowance and for compulsory nursing care insurance is omitted and premium relief in old age is possible.
Important to know: Separate tariffs for children in private health insurance in Germany
Children must be insured separately in private health insurance. If the higher-earning parent is privately insured, the children must also be privately insured.
*The example also provides for a ten percent deductible.
How do private health insurance costs develop in old age?
In principle, the insurance premium is reduced in old age, because some parts of the premium no longer apply. These are the contribution for the daily sickness benefit and the premium surcharge of ten percent.
The exact amount of the premium in old age depends on the age of entry, the selected tariff, the amount of the deductible and how well the insurer has managed the age reserves. Another factor is whether the policyholder has integrated an age relief component into the contract.
At ottonova, 50 percent of premiums are invested in age reserves and it is possible to take out a premium relief component. From the age of 64 or 67, there is the option of reducing premiums. Thus, the amount can be reduced between 100 euros and up to 400 euros per month.
➜ More information on private health insurance in Germany in old age
How does the premium calculation work in German health insurance?
While the cost of public health insurance is based on the idea that everyone pays into a shared pot, private insurance is calculated differently. Germans believe strongly in planning for the future. And to ensure that your healthcare costs for the future are covered, your premium each month goes towards securing your treatments, for now and for whatever comes next.
In the private system, the cost of your monthly premium is calculated by the health insurers based on your age at the time you sign up. The premium calculation is based on the so-called equivalence principle. This means that a group of persons of the same age, the collective, is considered when calculating the premiums. Therefore, the entry age also plays a role, as each age group is considered separately.
The base cost is the same for any 26-year-old, or any 34-year-old, and so on. This sum already factors in important variables like possible inflation, rising costs of health treatments, and more. But more importantly, this price is also calculated at double the price required for your current calculated health status.
Why? To ensure your financial security in the future. Half of the premium you pay now will go towards paying for your anticipated health costs. The other half is set aside and conservatively reinvested by the insurance company to ensure that your costs will stay stable in the future.
Unlike in the statutory health insurance, the younger members in the private health insurance do not co-finance the rising costs of the older generation. Under private health insurance, each collective must provide care for itself.
The rule here is that the insurance premium exceeds the likely costs incurred at a young age. The resulting surpluses are accumulated at interest as so-called old-age provisions or premium reserves for old age. The provisions and accrued interest then compensate for the presumably higher premiums in old age.
If the health condition of a collective member deteriorates, this does not lead to an adjustment of the individual premium for the private health insurance of this same member due to the individually increased costs. The additional expenses for the one insured person are allocated to the collective in this tariff and this age group as part of a premium adjustment only for this one private health insurance.
Are there also premium increases in private German health insurance?
Premium increases in tariffs from private health insurers can be expected in Germany, for example, if healthcare costs rise at an above-average rate. This can be due to disproportionate salary increases for employees in the healthcare sector or adjustments to fee schedules. If pharmaceutical manufacturers increase the cost of their products, this can also lead to an adjustment in premiums for an health insurance provider. Inflation can also drive up costs.
In addition: the legislator regulates when the insurance premium may increase. The prerequisite for a premium adjustment is that the costs within an age group of a tariff deviate upwards by more than ten percent from the original calculation.
In contrast, the public health insurance system’s rates may increase every year, and they will. The current demographic situation guarantees it. With the current system, in which every young healthy insured person pays towards a shared pot that goes towards financing the rest of the insured bodies, the shift towards an older population with fewer young people to contribute toward the costs means that costs will continue to increase, year after year. The private system makes sure that your individual healthcare costs are taken care of.
HIER SCHREIBT Espen Markus Mjøs
Espen Markus - originally from Norway - is sales agent in ottonova's English sales team. He's in contact with potential customers every day and answers Expats' questions about German health insurance.
HIER SCHREIBT ottonova sales experts
Our ottonova team of experts has over 40 years of experience in private health insurance and answers questions about it every day. What are old-age provisions and for whom does private health insurance make sense? What is the actuarial interest rate and which tariff is right for you? They know!
