Health Insurance for Employed Persons in Germany

In Germany, health insurance is mandatory for everyone. Specific regulations determine who can enroll in public or private health insurance. Employees are automatically enrolled in public health insurance unless their income exceeds the threshold (JAEG), set at €69,300 per year or €5,757 per month for 2024. This threshold is adjusted annually.

Compulsorily Insured Employees

Employees earning less than or equal to the income threshold must be enrolled in public health insurance. Employers register these employees automatically, but employees can choose their public health insurance provider. Upon signing an employment contract, employees must inform their employer of their chosen provider.

Voluntarily Insured Employees

Employees who meet the income threshold for at least one year become voluntarily insured, allowing them the option to switch to private health insurance or stay with public health insurance.

Switching from Public to Private Health Insurance

Private health insurance is popular among eligible employees due to the income-based premiums of public health insurance. High earners might hit the maximum contribution ceiling in public health insurance, whereas healthy individuals can save money with private insurance, as premiums are based on health status and other factors. Employees wishing to switch must secure private health insurance before canceling their public insurance and provide proof of new coverage.

Cost of Public Health Insurance

Public health insurance premiums are a fixed percentage of income and are divided into two rates:

• General Contribution Rate: 14.6%, including sickness benefits.
• Additional Contribution Rate: Averaging 1.3%, varies by provider.

The total cost is shared equally between the employee and employer.

Health Insurance for Civil Servants

Civil servants are automatically classified as voluntarily insured and have the right to state aid covering 50% of insurance costs. They can also opt for private health insurance without meeting the income threshold, enjoying the same benefits as regular employees with added flexibility.

Benefits of Private Health Insurance for Employees

High-earning employees, those above the annual income threshold, can benefit significantly from private health insurance. Contributions are based on health status and coverage level rather than income. Main benefits include:

• Lower insurance contributions
• Enhanced coverage
• Shorter waiting times
• Faster appointments
• Flexible coverage options
• Premium refunds and bonus programs

Independent Health Insurance Brokers

If you meet the annual income threshold, our independent insurance brokers can help you find the best private health insurance coverage, saving you money. Contact us today to discuss your coverage needs.