How to Save Money on Health Insurance by Switching Providers in Germany?
How to Save Money on Health Insurance by Switching Providers in Germany?
Millions of people in Germany are facing higher health insurance premiums this year, prompting many to consider switching providers to save money. According to Focus, nearly a quarter of health insurance providers in Germany have increased their premiums since the beginning of the year. Here’s what you need to know about when it might be worth changing your provider.
Why Are Premiums Increasing?
Since April, 22 out of 95 insurance companies raised their contributions, affecting approximately 7.6 million customers. This level of contribution increase is notable; for example, only one company raised rates mid-year in 2023, and three did so in 2022. Typically, insurance companies increase premiums at the beginning of the year.
Which Providers Raised Rates?
Most increases were seen among statutory health insurance providers (GKV), or public insurance. Specific companies that raised contributions include:
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- KKH: Increased from 1.98% to 3.28% in August.
- BKK24: Raised rates from 1.89% to 2.55%.
- BKK Wirtschaft & Finanzen: Increased from 1.99% to 2.99% in September.
In contrast, some larger providers like HKK, TK, Audi BKK, HEK, Energie-BKK, and BIG direkt gesund have not raised their rates and are maintaining additional contributions below the industry average of 1.78%.
Potential Savings by Switching Providers
By switching to a provider with lower contributions, you could save a significant amount each year. For example:
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- €3,000 monthly salary: Save over €300 per year.
- €4,000 monthly salary: Save just under €400 per year.
- €5,000 monthly salary: Save about €465 per year.
How to Switch Insurance Providers?
In Germany, health insurance is legally required, so you must secure coverage with a new provider before cancelling your old plan. Here’s how to proceed:
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- Membership Application: Submit an application with a new provider. They will usually handle the cancellation of your old policy.
- Special Right of Termination: If you’ve recently signed up and premiums increase within the first year, you can terminate within one month of being charged the higher rate.
- Monthly Cancellation: After 12 months with a provider, you’re free to cancel your membership on a monthly basis.
Considerations for Foreign Residents
While saving money is essential, foreign residents may also want to consider the services offered. For instance, AOK and TK are known to provide support in English, which can be particularly useful for newcomers and international students.
What About Private Insurance?
For those earning over €64,350 annually, private insurance may offer comparable coverage at a lower percentage of income. However, private plans often have premiums that increase over time and may end up being more costly in the long term. Statutory insurance may still be preferable if you plan to retire in Germany.
Switching health insurance providers can be a wise financial decision, especially during a time of rising premiums. Consider all factors carefully to find the best option for your needs.
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