Insurance premium

Insurance premiums are sometimes referred to as insurance contributions. However, given the structure of the German health insurance system, with contributions from employers and employees, it is important to draw a distinction between the two terms.

Your insurance premium is the regular fixed or contractually agreed amount you pay for health insurance

Most people pay their premiums on a monthly basis. Your monthly premiums are determined by various factors, including your age, whether you have any existing health conditions, the tariff you select and, in Germany, which health insurance system you select.

In the public health insurance system, your premiums are calculated as a percentage of your salary. The current contribution rate is 14.6% of your gross monthly income, plus an average surcharge of 1.70%. The average surcharge will presumably rise every year because of the rising costs in health and the demography. Premium calculations take into account your income up to €62,100per year. It also rises almost every year. So, if your annual salary is above this figure, you reached the highest possible contribution rate. Employers contribute 50% of their publicly insured employees’ premiums.

In the private health insurance system, you contractually agree your premiums with your insurance provider. This means you can select the best level of cover for your needs and financial situation. As in the public system, employers contribute 50% of an employee’s premiums – up to the maximum amount they would contribute for a publicly insured employee.

ottonova for Expats

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The easy health check-up for expats

You can claim a part of the costs for private health insurance as ‘Vorsorgeaufwendungen’ expenses in your tax return, this is what the Citizen Relief Act (Bürgerentlastungsgesetz) has been saying since 2010, namely the part that is considered basic coverage. We certify how high this portion is each year and you do not have to calculate it yourself. The basic share corresponds to the benefits of the public health insurance.

We are happy to schedule a call to find out your personal needs and provide you with an initial quote. We will then help you and guide you through our online enrollment.

In the next step you will speak with our medical underwriters regarding health topics and your financial situation. If you have already been insured in Germany for the last three years, we will then provide you with your finalized offer. Otherwise we will organize a medical check-up for you.

We work with a company called Medicals Direct that will send a private (English-speaking) nurse to come meet you at your preferred location. They will do a general check up and take a blood sample.