The German healthcare system is world-class, but choosing between Gesetzliche (Public) and Private insurance is the biggest financial decision you will make as an expat.
Germany operates a dual healthcare system. Approximately 90% of the population is enrolled in the statutory public health insurance system (Gesetzliche Krankenversicherung - GKV), while the remaining 10% opt for private health insurance (Private Krankenversicherung - PKV).
Public insurance is built on the solidarity principle: you pay based on what you earn, not based on your health risk.
Private insurance operates like standard global insurance. You pay based on your individual risk profile.
If you plan to stay in Germany long-term and start a family, stay in the Public system. If you are young, single, highly paid, and only plan to stay in Germany for 2-5 years, Private insurance will save you thousands of euros.
Yes, health insurance (Krankenversicherung) is a legal requirement for everyone residing in Germany. You cannot get a work visa, residency permit, or even register at a university without proof of valid German health insurance.
Public health insurance costs exactly 14.6% of your gross salary, plus a supplemental rate charged by the specific provider (usually around 1.7% to 2.0%). The maximum you can pay is capped at the Beitragsbemessungsgrenze (BBG), which is €5,512.50 per month in 2026. If you are employed, your employer pays exactly half of the total premium.
The JAEG is the compulsory insurance threshold. In 2026, it is set at €73,800 per year. If you earn less than this, you MUST use public health insurance. If you earn more, you are free to choose between staying in the public system (as a voluntary member) or switching to private health insurance (PKV).
Yes! One of the biggest advantages of the German public system (GKV) is family co-insurance (Familienversicherung). Non-working spouses and children are covered entirely for free under your policy. Private insurance, however, requires you to pay a separate premium for every family member.
Browse verified English-speaking jobs across Germany. Salaries above €73,800 qualify for private insurance.
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