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HEALTH INSURANCE

Why more than 20 million people in Germany face higher health insurance costs

Several German health insurance companies have raised their rates this year, pushing up the costs for customers.

Many people are facing higher health insurance contributions this year.
Many people are facing higher health insurance contributions this year. Photo: picture alliance / dpa | Jan Woitas

According to a study by the comparison portal Check24, around 21 million people with statutory health insurance (gesetzliche Krankenversicherung or GKV) have had to pay higher contributions since the beginning of the year after several organisations raised their additional contributions. 

A total of 19 of the 97 statutory health insurance providers in Germany have increased their additional contributions, the comparison portal found.

It means more than a quarter of the 73 million people with statutory health insurance in Germany have to pay higher additional contributions. 

According to Check24, the higher additional contributions can cost an insured person in the most expensive case an extra €261 per year.

Among those to have raised their additional contributions include AOK Baden-Württemberg and AOK Bayern, which have both increased the additional contributions from 1.10 percent to 1.30 percent. Check24 has published the full list of additional contributions here.

Customers affected receive a letter in the post letting them know when their contributions are increasing. Health insurance providers justify raising their rates by pointing out rising costs in the health and care system. The pandemic has also put significant strain on providers. 

READ ALSO: How to make the most of reward schemes on your German health insurance

A total of 67 health insurance providers are keeping their individual additional contribution the same. And as many as 11 health insurance funds lowered their contributions – although most of these already had comparatively high rates.

In 2021, Techniker Krankenkasse (TK), the largest statutory health insurance fund in Germany with around 8.2 million members, raised its additional contribution significantly.

The contribution went up to 1.2 percent from 0.7 percent. Average earners saw additional monthly costs of about €10 extra, while self-employed people had to pay up to €288 more per year. 

TK has not raised its rates this year. 

Can you switch health insurance?

If your health insurance company increases the additional contribution, those insured have a special right of termination until January 31st, 2022.

They can apply for the change up until this date, and they will then become a member of the new health insurance provider from April 1st after the statutory two month change-over period has expired.

Insured people also have the right to change their statutory health insurance fund every 12 months.

The cost of public health insurance in Germany is a fixed salary percentage of 14.6 percent, while the reduced contribution rate for employees without entitlement to sick pay is 14.0 per cent.

Beyond that, however, health insurance providers set an additional contribution, which can currently be up to 2.5 percent.

The contribution assessment ceiling for statutory health insurance (GKV) – up to which contributions are levied – remains unchanged at €58,050 per year in 2022, as in the previous year.

Check24 said that switching providers can save employees up to €624 per year depending on their income.

Self-employed people pay both the employee and employer contribution and can therefore save up to €1,248 euros per year by switching, the analysis found. 

However in a representative YouGov survey only 11 percent of respondents in Germany said they had recently changed their insurance provider or would do so in the foreseeable future.

Most of the benefits provided by statutory health insurance organisations are identical.

READ ALSO: EXPLAINED: The three new services covered by German health insurance

However, there are some differences in the voluntary benefits, including dental health (professional dental cleaning and discounted dentures), vaccinations (flu vaccinations for under 60s and travel vaccinations), various cancer screening examinations and osteopathic treatments.

“In addition to the financial relief, insured people can also secure higher subsidies for professional dental cleaning or other additional benefits by switching,” said Dr Daniel Güssow, Managing Director of statutory health insurers at Check24.

Vocabulary 

Additional contributions (die) Zusatzbeiträge

Right of termination – (das) Kündigungsrecht 

Benefits (die) Leistungen

We’re aiming to help our readers improve their German by translating vocabulary from some of our news stories. Did you find this article useful? Let us know.

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MONEY

Italy expands €200 payment scheme and introduces public transport bonus

Italy's government will extend its proposed one-time €200 benefit to more people and introduce a €60 public transport payment, Italian media reported on Thursday.

Italy expands €200 payment scheme and introduces public transport bonus

Seasonal workers, domestic and cleaning staff, the self-employed, the unemployed and those on Italy’s ‘citizens’ income’ will be added to the categories of people in Italy eligible for a one-off €200 payment, ministers reportedly announced on Thursday evening.

The one-time bonus, announced earlier this week as part of a package of financial measures designed to offset the rising cost of living, was initially set to be for pensioners and workers on an income of less than €35,000 only.

However the government has now agreed to extend the payment to the additional groups following pressure from Italy’s labour, families, and regional affairs ministers and representatives of the Five Star Movement, according to news agency Ansa.

Pensioners and employees will reportedly receive the €200 benefit between June and July via a direct payment into their pension slip or pay packet.

For other groups, a special fund will be created at the Labour Ministry and the procedures for claiming and distributing payments detailed in an incoming decree, according to the Corriere della Sera news daily.

One new measure introduced at the cabinet meeting on Thursday is the introduction of a one-time €60 public transport bonus for students and workers earning below €35,000. The bonus is reportedly designed to encourage greater use of public transport and will take the form of an e-voucher that can be used when purchasing a bus, train or metro season pass.

Other provisions reportedly proposed in the energy and investment decree (decreto energia e investimenti), which is still being adjusted and amended, include extending energy bill discounts, cutting petrol excise duty and rolling on the deadline to claim Italy’s popular ‘superbonus 110’.

The €14 billion aid package, intended to lessen the economic impact of the war in Ukraine, will “fight the higher cost of living” and is “a temporary situation”, Prime Minister Mario Draghi has said.

The Local will report further details of the payment scheme once they become available following final approval of the decree.

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