Health Insurance in Germany

Germany is renowned for its exceptional and all-encompassing healthcare system. The country provides its residents with health, sick pay, and long-term care insurance coverage, making it one of the most comprehensive healthcare systems in the world. On this page, we will explore the German health insurance system in a nutshell.

The German health insurance system can be divided into two main categories: public and private. Approximately 90% of the population is a mandatory or voluntary member of the public health insurance scheme, while the rest have private health insurance.

In addition, the German health insurance system mandates that all individuals living in Germany must have insurance coverage for hospital and outpatient medical treatment. Failure to comply with this mandate results in heavy penalties, including fines and possible deportation.

Public health insurance is available to all individuals, regardless of their income, age, or pre-existing health conditions. Under the public health scheme, members are required to make monthly contributions based on their income, which are split between the employee and employer. These contributions cover all necessary healthcare services, including doctor’s visits, hospitalization, prescription drugs, and rehabilitation.

The costs of the public healthcare system in Germany are enormous and continuously rising due to various factors, including demographic structure, medical cost inflation, and the growing bureaucracy that increases with each reform. The expected loss for the public health system in 2023 is over 17 billion Euros, and financing is through payments made by the members of the German public health scheme and their employers, along with ever-higher tax subsidies.

Private health insurance in Germany is available to individuals who earn more than a certain income threshold (69.300€ in 2024), self-employed, or freelancers. Under the private health insurance system, members pay a monthly premium based on their age, health status, and the benefits included in the plan. Private health insurance generally provides more extensive coverage than public health insurance, including dental and vision care, and access to specialized doctors and hospitals.

The German health insurance system is regulated by the Federal Ministry of Health and the Federal Joint Committee, which is responsible for setting healthcare regulations, policies, and guidelines. The healthcare system also requires a high level of transparency and accountability, with regular reviews and evaluations of the quality of care provided by healthcare providers.