10 common myths about private health insurance

#1 Private health insurance is getting more expensive

This is true – but it’s true of statutory health insurance, too. Health insurance premiums are going up across the board to cover rising healthcare costs.

From 2004 to 2024, private health insurance premiums went up an average of 2.8% per year, while statutory health insurance premiums went up 3.2% [source].

So, private health insurance is actually doing pretty well. And private health insurance companies are required to inform you when your premiums go up, whereas statutory health insurance premiums go up all the time without notice.

#2 Private health insurance is unaffordable when you’re older

That’s not usually true. Your private health insurance premium depends on your age, your health and what benefits you want. To make sure your premiums are still affordable when you’re older and need more medical support, private health insurance builds up a reserve for you from the start. The earlier you switch to private health insurance, the more you can let the interest work for you.

Once you retire, you won’t need the supplemental sick pay part of your policy anymore, which will make your premiums lower. Former civil servants also get their private health insurance premiums subsidised by the government.

To reduce your costs even further, you can also switch plans.

#3 It’s not for families?

Not true – private health insurance is also suited for families! You’ll enjoy better benefits for you and your kids, like premium waivers or refunds during parental leave. Civil servants receive extra subsidies for their children.

Have our experts take a look at your situation! That way, you can be sure you’re making a well-informed decision for your family.

#4 Private health insurance bills have to be paid up-front

Not true! You usually have four weeks to pay a medical bill in Germany. This means you can decide if you want to pay your doctor directly and then get reimbursed by your insurance, or if you want the insurance company to reimburse you first, and then you pay your doctor. If you want to wait for the reimbursement, you submit the bill to your insurance company digitally, and then you’ll see the money in your account in around 1–2 weeks.

For expensive treatments like hospital stays, your doctor and insurance company can handle payment entirely on their own. Private health insurance has a lot of advantages, especially when it comes to reimbursements.

#5 Once you go private, you have to stay private

Not necessarily! You can switch to statutory health insurance in certain situations. For example, if you’re currently self-employed or unemployed, getting a permanent position will make you eligible for statutory health insurance again, as long as your new salary is under the annual income threshold (for 2024: €69,300).

After you’re 55 years old, though, it does become difficult to switch.

#6 Statutory health insurance benefits are enough

Everyone with statutory health insurance gets basic medical care: standard treatments, fewer choices and no cover for things like glasses, hearing aids or dentures.

Services are legally regulated, meaning they’re the same no matter your provider. This also means that the range of benefits and amount you can expect to pay can change at any time.

So what makes private health insurance different?

With private health insurance, you can expect high-quality, personalised healthcare in keeping with the latest advances in medicine.

You choose the benefits that are important to you, and are guaranteed perks like treatment by the head physician or a private room when you’re in hospital.

A lot of things are easier with private health insurance, too, from getting appointments to preventive care and shorter waiting times. If you’re rarely ill, you’ll even get money back at the end of the year!

#7 If you become ill, you pay more

Not true. Illnesses, whether acute or chronic, have no influence on your private health insurance premium. Your premium is calculated at the start of your contract and is based on factors like your age, health and the plan you chose.

Prices are only increased as part of general adjustments, and they apply to everyone who’s chosen your same plan.

And don’t worry, your insurer can’t cancel your policy if you fall ill.

#8 Mothers on parental leave aren’t covered by private health insurance

Not true! Private health insurance cover is still active during maternity leave and parental leave. The best providers even exempt mothers from paying premiums for 6–12 months during parental leave.

What if you’re working part-time? If you’re on parental leave, you can work up to 32 hours a week. If your salary dips below the compulsory insurance limit, you can either switch to statutory health insurance or be exempted from the compulsory insurance so you can stay with your private health insurance.

#9 Private health insurance involves lots of paperwork

Not true (anymore). Digitalisation has finally come to German insurance! Most providers will let you submit your bills and prescriptions via app or online portal. This makes the reimbursement process much faster, too.

As long as the bill meets the legal requirements and the benefit is included in your policy contract, your private health insurance will cover it. Should there be any disagreements, there’s an arbitration board to help.

#10 You get kicked off private health insurance if you lose your job

You normally have to switch to statutory health insurance if you become unemployed and choose to receive an unemployment benefit like Arbeitlosengeld I. If you were privately insured in the last 5 years before becoming unemployed, you can be exempted from this requirement.The Federal Employment Agency (Bundesagentur für Arbeit) will then pay part of your private health insurance premium, up to the amount of the premium you’d be paying for statutory health insurance.

If you start getting citizen’s income (Bürgergeld, a form of basic income), you can stay privately insured and receive a subsidy from the Jobcenter towards your premium.

How do I find the best insurance for my needs?

It’s simple: call the pros. They’re always up to date on the current insurance market, know the subtle differences between plans and can create quotes tailored to your unique needs.

Tell us what we can help you with and let’s get started!