Germany claims to be the birthplace of medical insurance. Its foundation dates back to the 1880s and the Bismarck season. It is a general rule that every German citizen must have medical coverage. Nonetheless, you are in control of choosing your own arrangement, and there may be numerous options available to you. Continue reading to learn about the wonderful yet complicated German medical coverage system.
What sort of human services framework does Germany have?
Germany is well-known for its excellent healthcare system. As a national framework, everyone in the country is required to have Krankenversicherung (medical coverage). Notwithstanding the fact that there are limitations on who can be protected by each, there are both governmental and private protection possibilities. Around 90% of people have public medical coverage and the option to supplement it with private insurance. The rest is entirely private.
The cost of protection is high, but this suggests that if you do require treatment, the hospital costs you will incur in Germany will be minimal. By law, all medical coverage plans must pay the majority of the costs for a reasonable scope of fundamental administrations.
Germany is known for having one of the best health-care systems in the world, with inhabitants receiving extensive health-care coverage. Around 85% of the population is either required or voluntary members of the public health system, with the remaining population having private health insurance. The 2007 health-care reform mandated that everyone in Germany be covered for at least inpatient and out-patient medical treatment. Pregnancy and certain medical check-ups must also be covered.
The expenses of the German health-care system are enormous and rising as a result of demography and medical cost inflation. Recent government changes have sought to make hospitals more competitive, lowering costs for public health insurance carriers (Gesetzliche Krankenversicherung or GKV).
The introduction of the Gesundheitsfonds, a huge collection and distribution fund for all GKV payments, took effect on January 1, 2009. The repercussions were felt by everyone: the current 113 Krankenkassen allege that the amounts distributed each person are insufficient to meet expenditures, and a number of the Kassen have already declared bankruptcy. Their members will, of course, be free to join another Kasse.
As is customary in Germany, another reform went into effect on January 1, 2015, with the following title: Gesetz zur Weiterentwicklung der Finanzstruktur and der Qualität in der gesetzlichen Krankenversicherung. A variety of steps were taken to ostensibly improve competition among health insurance funds and minimize bureaucracy: The premiums for members of the German public health system have been reduced from 15.5% to 14.6% of income, which appears appealing at first glance.
The Krankenkassen can still demand a supplemental payment to cover their costs, and as the median reported percentage amount in 2018 is around 1%, the total with the majority of Kassen is 15.6%. The nasty clause: the employer share has been frozen at 7.3% of the exceptional income monthly level of 4,425 Euros, while the employee bears the entire burden of the 7.3% plus x (now ranging from 0.3 to 1.7%).
This will necessitate a comparison of the total premiums of the various Kassen before picking which to join. Additional revisions to try to fund the system are likely, which will mean that premiums will rise and benefits will be increasingly rationed.
How To Open Health Insurance In Germany
While living in Germany, you have three options for health insurance: the government-regulated public health insurance system (GKV), private health insurance through a German or international insurance firm (PKV), or a combination of the two. If your salary exceeds a particular threshold or you are self-employed, you can choose full private plans. Locating the greatest state health insurance service provider or the most suitable coverage from a private health insurer at a competitive rate is not always straightforward, but it is well worth the effort.
Because everyone has different needs and expectations from health insurance, it is critical to understand the system in order to find the best plan for you while living in Germany.
Health insurance is not a commodity, but rather a necessity in times of illness or after an accident.
Certain health insurance policies provide less coverage than others, and the scope and quality of the terms and conditions are critical.
Overview
Germany is known for having one of the greatest and most comprehensive health-care systems in the world, with inhabitants receiving health, sick pay, and long-term nursing care insurance. Around 90% of the population is either required or voluntary members of the public health system, with the remainder having private health insurance. The 2007 health-care reform mandated that everyone in Germany be covered for at least inpatient and out-patient medical treatment. If you have any gaps in coverage, you will be penalized severely.
Because everyone has different needs and expectations from health insurance, it is critical to understand the system in order to find the best plan for you while living in Germany. It is crucial to note that you cannot just switch between the public health program and private health insurance at your leisure since certain requirements must be met. Independent counsel from experienced insurance brokers who understand the benefits and drawbacks of both systems, as well as your specific circumstances, is strongly encouraged.
You and your dependents must also join the government’s long-term nursing care scheme (Pflegepflichtversicherung). This pays a portion of the expense of addressing personal nursing needs, such as feeding and bathing, for persons who have become severely incapacitated. The cost of nursing care has risen considerably as a result of major reforms to the system in 2017/2019. This cost is 3.05% (or 3.4% if you don’t have children) of your gross earnings (up to a maximum of 165 Euros per month), with your employer only covering up to 74 Euros.
If you make 4,837 Euros or more as an employee, this amounts to a maximum total for health and nursing care insurance of approximately 930 Euros per month. Your company will contribute about 459 Euros.
Health Insurance In Germany
Government insurance premiums cover you and your non-working dependents, whereas private medical insurance payments are often paid for each individual insured. By agreeing to a deductible, you can lower the monthly cost of your private health insurance (also known as an excess or franchise). Private health insurance firms in Germany are not allowed to cancel your policy if you file claims, and they are also required to set aside 10% of your premiums as a contingency for keeping the cost consistent after you retire.
Be wary of short-term policies that do not need medical underwriting. These insurance are rarely durable and do not cover pre-existing conditions. If you decide to stay longer than the specified contractual time (ranging from one to five years) and your health insurance contract expires, finding new health coverage may be difficult and expensive. Furthermore, even if you acquired such a plan from a German health insurance firm before or upon your arrival in Germany, the immigration authorities may not recognize it, and you may be obliged to obtain a permanent health insurance plan in order to stay. Penalty fees may then be imposed.
If you buy a private medical insurance plan from a German health insurance firm, you will receive a certificate (Paragraph 257 SGB V Arbeitgeberbescheinigung) allowing you to receive the same employer subsidies as a government plan member. This equates to a maximum monthly employer subsidy of 385 Euros for your private health insurance policy and up to 74 Euros for your private nursing care insurance. If such certification is not supplied, your employer may, but is not required to, compensate you for a portion of the cost of your medical insurance. Most German businesses now require this certificate as confirmation that your insurance benefits are compliant with the law.
Insurance for Sick Leave
If you become ill while in Germany, your employer will normally pay six weeks’ full salary, after which the government scheme health fund (Krankenkasse) pays up to 70% of your gross income (up to a maximum of approximately 3,386 Euros per month) as statutory sick pay (Krankengeld) for up to 78 weeks if you are a member of the GKV. After deducting social security, you would have a maximum of around 2,970 Euros to finance your usual monthly fixed expenses such as rent, groceries, and other insurance plans.
If you earn more than this per month after taxes, it may be worthwhile to consider purchasing extra sick pay insurance, which is available at reasonable rates. This is especially crucial if your monthly fixed living expenses exceed 2,970 Euros. If you obtain complete private medical insurance, you should also consider purchasing appropriate sick pay insurance to cover your living expenses because the GKV does not provide statutory sick pay. Please keep in mind that neither private nor statutory sick pay covers permanent incapacity, and it is believed that you will return to full-time work. As a result, you should think about getting a separate coverage for permanent disability and severe sickness.