GKV vs PKV: Public vs Private Insurance in Germany

Germany operates a dual health insurance system consisting of Statutory Health Insurance (Gesetzliche Krankenversicherung, GKV) covering approximately 87% of the population, and Private Health Insurance (Private Krankenversicherung, PKV) covering about 11%. The remaining 2% are covered through special programmes such as military or social welfare schemes.

GKV contributions are income-based, set at approximately 14.6% of gross salary (split equally between employer and employee), plus a supplementary contribution averaging 1.3%, bringing the total to about 15.9% of income up to the contribution ceiling of €62,100 annually. Coverage is comprehensive and includes hospital care, outpatient physician visits, prescription drugs, dental care, rehabilitation, and preventive services.

PKV is available to employees earning above €69,300 annually (2024 threshold), self-employed individuals, and civil servants. PKV premiums are risk-based rather than income-based, meaning they depend on age, health status at entry, and chosen coverage level. While PKV can offer faster access to specialists and broader coverage, premiums tend to increase with age, and switching back to GKV after age 55 is nearly impossible.