The 6 Most Expensive Health Insurance Mistakes in Germany
Don't lose money on your health insurance! We show you the 6 most expensive mistakes and how to fix them. 💰
Key Takeaways
- An employee saved €39,509 by correcting a mistake; learn the six most expensive mistakes to avoid the same traps.
- You could be wasting hundreds of euros annually on a high Zusatzbeitrag without an actual benefit.
- Cheap private plans often lack seniority savings and have benefit caps, leading to expensive costs in old age.
- You’re leaving free money on the table by not using bonuses and special Wahltarife for healthy behavior.
- With no government caps, you can get thousands back in private insurance by strategically managing your claims.
- Never ignore your contribution notice; errors can lead to maximum contributions and back payments costing thousands.
- You have a legal right to switch tariffs within your insurance, which can save you a significant amount.
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More InformationIntroduction: How to Avoid Health Insurance Traps in Germany
Imagine this: a regular employee in Germany once received a tax refund of €39,509 because she had been overpaying her public health insurance for years without even realizing it. That’s almost €3,000 in her pocket every single year, money that was simply gone because she made just one of the six biggest health insurance mistakes. And she is not alone. You could be in the same situation. Are you 100% sure you’re not paying too much or getting too little back from your health insurance?
This guide will show you the six most common and most expensive health insurance mistakes in both public and private insurance, and, most importantly, how you can avoid falling into the same expensive traps. Understanding these pitfalls is crucial for your financial well-being and for ensuring you have the best possible healthcare in Germany.
Mistake 1: Not Switching Your Public Health Insurance
Public health insurance in Germany keeps getting more expensive. Last year alone, contributions jumped by almost 12%. The good news is that about 95% of benefits are the same across all public insurers (Krankenkassen). But the Zusatzbeitrag—the extra contribution you have to pay—can vary massively. If you’re still with the same insurance out of habit, you could be wasting hundreds of euros every year. For example, the lowest Zusatzbeitrag is currently BKK Firmus with 2.18%, while one of the highest is Knappschaft with 4.4%. By simply switching, you can put more than €730 back in your pocket every single year. And yet, almost half of all Germans have never switched their Krankenkasse.
The good news is that switching is incredibly simple: just apply at the new insurer, and they’ll handle the cancellation with the old one for you. There is no medical check, no stress, and no risk. Of course, it’s not only about price. Some public health insurers cover extras like professional dental cleanings, osteopathy, or even fertility treatments. So, don’t just pick the cheapest one; pick the one that truly fits your health needs best without overpaying.
Mistake 2: Choosing the Cheapest Private Plan
While public health insurance mistakes can cost you hundreds of Euros, private health insurance mistakes can cost you thousands. One of the biggest errors is going for the cheapest private plan possible. Many young and healthy people think, “Why pay more for something I hardly use right now?” and insurance ads also push this “save today” mentality. But in private health insurance, cheap plans almost always come back to haunt you. As we say in Germany, if you buy cheap, you buy twice. And in private health insurance, that couldn’t be more true. Cheap plans often cut corners on seniority savings (Altersrückstellungen)—the money built into your premium to stabilize contributions later in life. If you skip those savings now, your premiums could explode in old age.
Alternatively, they may limit benefits with strict caps. Imagine needing a prosthetic arm that costs €40,000, but your plan only covers €15,000. The rest comes straight out of your pocket. That’s why we jokingly call these cheap plans “Millionaire Tariffs”—because you need to be one to afford the gaps. A study by Stiftung Warentest recently found that 69% of private plans fail to meet minimum coverage standards. This underscores the fact that private health insurance should never be about getting the lowest price. It’s about securing the best medical care for you and your family. If you’re earning more than €73,800 as an employee or if you’re self-employed, you have the choice between public and private insurance.
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More InformationMistake 3: Ignoring Public Health Insurance Bonuses
Back to public health insurance, because even if you’ve picked the right Krankenkasse, you might still be wasting money if you’re not using the extras and bonuses built in. Every public insurer offers bonus programs and additional benefits on top of the standard 95% of legally required services. But here’s the problem: most people don’t even know they exist, and that’s expensive. By doing simple things like regular check-ups, getting vaccinations, taking fitness courses, or getting professional dental cleanings, you can earn cash rewards, vouchers, or even subsidies for your gym membership. Depending on your insurance, the bonuses can range from €50 to nearly €500 a year. That’s essentially free money, just for taking care of yourself—a win for your health and your wealth.
On top of that, many Krankenkassen also offer Wahltarife—special optional tariffs that reward you financially if you use fewer medical services. Here’s how it works: you commit to covering a small share of costs yourself with a deductible, meaning you don’t submit bills for minor treatments. In return, your insurance pays you back a bonus. If you stay healthy, you could get back up to one full monthly contribution. That’s a pretty good deal, but private health insurance has a cashback program that can be even more rewarding.
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More InformationMistake 4: Not Using Private Health Insurance Cashback
Private health insurance takes it to the next level because if you’re not using your cashback, you could be missing out on thousands of Euros every year. Many private health insurers offer a Beitragsrückerstattung, or cashback. If you stay healthy and don’t submit any claims, your insurance rewards you by paying back part of your premium. The big difference from public insurance is that in public insurance, cashback is capped by government rules. In private insurance, it is not. So the longer you go without claims, the more cashback you can get.
Over time, some insurance companies pay back four, five, or even six monthly contributions. Imagine that: you’ve been insured for a whole year, but only paid for half of it. And the other half is covered by your employer, so you are basically insured for free. So don’t leave free money on the table. If you’re in private health insurance, check whether your plan offers cashback and make sure you’re using it. Be smart: pay the small bills yourself first and only submit them later at the end of the year if it’s really worth it.
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More InformationMistake 5: Ignoring Your Public Health Insurance Beitragsbescheid
While private clients can enjoy cashback, millions of people in public insurance are quietly overpaying simply because they never check their Beitragsbescheid—the official notice that tells you how much you have to pay for public health insurance. Here’s the shocking part: studies show that over 40% of these notices are wrong, and the average mistake costs about €1,200 per year. The reasons for these errors vary. Sometimes it’s wrong tax or income data, and sometimes it’s missing documents.
Here’s a real example: someone had to pay more than 35% of their income to TK—almost twice as much as they should have been paying. Why? Because if you don’t submit full income records, your Krankenkasse can simply assume the highest possible income and charge you maximum contributions, whether you earned that much or not. Even family insurance can create nasty surprises. If a child didn’t actually qualify for free coverage, your public insurance can and will demand back payments, often for several years. So never just throw your Beitragsbescheid away. Check it carefully, because ignoring it could easily cost you thousands.
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More InformationMistake 6: Thinking Your Private Plan Is Permanent
And speaking of checking carefully, private health insurance also requires ongoing attention, which brings us to the last mistake: most people think once they’ve chosen their private plan, they’re stuck with it forever. But that’s simply not true. What many people don’t know is that you have a legal right to switch tariffs within your existing insurance. This is explicitly written into §204 of the German Insurance Contract Act (Versicherungsvertragsgesetz). Of course, you can also switch to a different insurance, but if you switch tariffs inside your current insurance, you keep all your valuable seniority savings. And in most cases, you don’t even need a new health check, unless you’re asking for more benefits. That means you can adjust your plan without starting from scratch.
The savings can be massive: optimizing your private plan can cut your monthly contributions by more than €100, often while keeping the same coverage. In some cases, you even end up with better benefits at a lower cost. If you want to save, use our free PerFinEx contract check. We can also help you with a full analysis of your existing plan to see if it’s still the right fit for your needs. Thank you for reading, and bis zum nächsten Mal!
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