Germany has a two-tier health insurance system that every resident must participate in. Understanding the difference between GKV (statutory / public health insurance) and PKV (private health insurance) is one of the most important decisions you will make when moving here.
GKV — Statutory Health Insurance
The GKV (Gesetzliche Krankenversicherung) is the default for most employees. Contributions are income-based (approximately 14–16% of gross salary, split between employer and employee). Coverage is comprehensive: GP and specialist visits, hospitalisation, prescription medications (with co-pays), mental health care, dental (basic), and maternity. Family members without their own income (spouses, children) are covered free of charge under family insurance (Familienversicherung).
PKV — Private Health Insurance
Employees earning above the Jahresarbeitsentgeltgrenze (approximately €69,300 in 2024) can choose PKV. PKV premiums depend on your age and health at the time you join — younger and healthier means lower premiums. PKV typically offers faster specialist appointments, private hospital rooms, and better dental coverage. However, premiums rise significantly with age, and family members are NOT covered automatically — each family member needs their own policy, which can make PKV expensive for families.
For Students and Freelancers
Students under 30 can use student GKV at a heavily subsidised rate (approximately €110/month). Freelancers must find their own coverage — either GKV (if income is modest) or PKV. AI-based insurance comparison tools like Clark or Ottonova (both German-based) can help compare PKV options.
Key Decision Factors
If you plan to bring family members, GKV is almost certainly better value. If you are a high earner planning to stay in Germany long-term, PKV can save money in your 30s but becomes expensive by your 50s. Switching from PKV back to GKV after 55 is extremely difficult.
