Discover practical strategies to reduce your private health insurance costs in Germany. Explore tips, optimizations, and cost-effective approaches to maintaining quality coverage while managing expenses.
Key takeaways
- There are several options to reduce private health insurance costs in Germany. For example, switching to a cheaper tariff, increasing deductible, etc.
- Don’t change your private health insurance provider; you’ll lose much of your saved retirement provisions.
- If private health insurance becomes too expensive, you can return to public health insurance. But it isn’t easy.
This is how you do it
- Explore the options mentioned in this guide to reduce your private health insurance premium.
- Consult your health insurance provider to find a cheaper tariff. Your insurer is legally obliged to provide consultation free of charge.
- Check if you can still return to statutory health insurance.
Table of contents
Reduce the private health insurance cost by switching to a cheaper tariff
Every privately insured person can switch to a different tariff from their health insurance provider. So, you can save money by picking a cheaper health insurance plan.
Of course, cheaper private health insurance plans offer fewer services than expensive policies. But ensure that you don’t forego the essential services.
To learn more, you can check our guide on the services a good private health insurance policy should cover.
Your private health insurance company is legally obliged to advise you free of charge on tariff switch. Moreover, the insurer must advise you in your best interests.
You can also get advice from fee-based advisors or insurance brokers.
Always ask your private health insurer to provide you in writing the various cheaper tariffs available. And how do the services in the new tariffs differ from the old?
NOTE: Do not switch to another private health insurance company. If you do so, you’ll lose a large part of your accumulated retirement provisions.
Increase deductible to reduce the cost of private health insurance
A deductible is the amount you pay; the insurer covers the rest. The higher the deductible, the lower the private health insurance premium.
So, another way to reduce the monthly cost of your private health insurance is to increase the deductible.
For employees, increasing the deductible is not the best choice. It’s because your employer pays half of the health insurance contributions. But the employer doesn’t contribute to the deductible.
NOTE: Do not opt for a deductible that is too high. In the long run, it could be financially disadvantageous. For example, in old age, you visit the doctor often and have to pay the full deductible before the insurance policy chips in.
Also, lowering the deductible later is tough. The private health insurers demand a complete health check again.
Moreover, the insurer may increase the monthly contribution to an extent where a lower deductible won’t make sense anymore.
Request risk reassessment to lower the private health insurance contribution
Private health insurance providers charge a risk surcharge if you have a pre-existing condition while taking out the insurance policy. However, if your condition is cured, you can ask the insurer to reduce or remove the risk surcharge.
The risk surcharge is usually 5 to 10% of your monthly premium. So, having it removed can save a lot of money.
Private health insurers will only reduce or remove the surcharge under two conditions.
- You have no symptoms for a long time.
- You don’t need medication for your pre-existing condition anymore.
You need a doctor’s certificate to prove that your illness is cured.
If your private health insurance provider refuses to reduce the risk surcharge, you can get help from the following places.
- Consumer advice center
- Insurance Ombudsman
- Insurance broker
Get back excluded services at the same private health insurance price
There could be services that the health insurance company excluded in the beginning due to pre-existing illnesses. But with the pre-existing condition cured, you can get those services back.
So, ask your private health insurance provider to review services previously excluded from your contract.
NOTE: Never replace risk charge reduction with new services. It’ll end up costing your more in the future.
Return to statutory health insurance in Germany
If you cannot afford the high monthly contributions of your private health insurance scheme, you can return to the public healthcare system. But it’s not easy to return to public health insurance. And returning gets difficult with age.
Returning to public insurance is almost impossible for people older than 55.
However, there are some ways to rejoin the public system. You can learn them in our guide on switching from private to public health insurance in Germany.
The German public healthcare system is one of the best in the world. Moreover, 95% of the employed population in Germany has public health insurance.
So, don’t worry; you won’t lose any essential services after returning to public health insurance in Germany.
Switch to the standard tariff to reduce private health insurance premium
You have two options if you cannot return to public health insurance.
- You can switch to a standard tariff from your private health insurer
- You can switch to a basic tariff from your health insurance provider.
However, there are the following restrictions to get a standard insurance plan.
- You joined private health insurance before 2009, or you are older than 65
- Younger people can only switch to the standard tariff if they are early retirees or at least 55.
- Your income is below the special annual salary limit, i.e., 62,100 € as of 2024.
The standard tariff is significantly cheaper than the basic tariff. However, the services in the standard tariff are slightly lower than in the basic tariff.
Switch to the basic tariff
The basic tariff is the second offer for privately insured people who cannot afford high insurance premiums. The basic tariff is significantly more expensive than the standard tariff. But offers slightly better services.
You should only switch to the basic tariff if your current plan is too expensive and you can’t switch to the standard tariff.
You should also check if you are eligible for help according to Section 9 of the Social Code II. If yes, you can get half of your health insurance contributions waived.
Moreover, you can apply for an additional subsidy to your private health insurance contributions from the job center.
Get a contribution refund to compensate for the private insurance cost
Private insurers offer to refund part of your contributions if you don’t submit medical bills for a certain period. However, it doesn’t make a big difference in your health insurance premium as the net refund is very low.
Moreover, you should not skip doctor’s appointments to get a premium refund.
Emergency solution
None of the above options worked for you to reduce your private insurance cost. You missed two consecutive payments on your private health insurance.
The insurer will send you a reminder. If you still can’t pay, you’ll automatically fall into the “emergency tariff.”
In emergency tariff, only acute illnesses and pain treatments are covered. Children, as well as pregnant women, continue to receive health insurance services. But only minimal.
The emergency tariff is a temporary solution. You should return to your original health insurance plan as soon as you can pay the full insurance premium.
Moreover, consult an insurance broker or job center for other options.
