Health insurance in Germany is not a luxury, it’s a legal requirement. But for millions of people living and working in the country, one question remains open: which one to choose — public or private? How to avoid overpaying, what do you actually get for the money, and who is eligible? The editorial team at G.Business looked into the details so you can make an informed and beneficial decision.
The difference between GKV and PKV — public or private
In Germany, there are two main health insurance systems:
- GKV (Gesetzliche Krankenversicherung) — public health insurance
- PKV (Private Krankenversicherung) — private health insurance
Most residents (over 70%) are insured through public providers. Examples include Techniker Krankenkasse, AOK, Barmer. Private insurance is chosen by high-income professionals, self-employed individuals, civil servants, and students over 30.
Who can choose private insurance
| Category | Eligible for PKV |
|---|---|
| Employees | Only if gross income exceeds €69,300 per year (2025) |
| Freelancers & self-employed | Yes |
| Civil servants (Beamte) | Yes |
| Students | Partially: up to 30 years old or 14 semesters |
| Pensioners | Depends on employment history |
How much does insurance cost in Germany in 2025
Public insurance (GKV):
You pay on average 14.6% of your income + an additional fee (around 1.6%).
Example: with a gross income of €4,000, your monthly premium is around €750 (half is paid by your employer).
Private insurance (PKV):
Fixed rate depending on age, health condition, and services covered.
Average monthly premium in 2025 is €350–600, and it does not increase with income.
Advantages and disadvantages: GKV vs PKV
| Criteria | GKV (Public) | PKV (Private) |
|---|---|---|
| Accessibility | For everyone | Only with conditions |
| Price | Based on income | Based on age/services |
| Children | Included for free | Separate fee per child |
| Services | Basic package | Often above public standard |
| Doctor access | Waiting times | Faster appointments, private clinics |
| Return to GKV | Possible if status changes | Difficult or impossible after age 55 |
How to choose the right insurance
- Income below €69,300? — GKV is easier and often more beneficial.
- Are you a freelancer with no children? — consider PKV.
- Planning a family or already have kids? — GKV may be more cost-effective.
- Young and healthy? — PKV offers premium conditions.
- Over 55? — better stay in GKV.
The question of which insurance is better in Germany doesn’t have a universal answer. It depends entirely on your situation: income, age, family, and long-term plans. What’s essential to know is that having health insurance in Germany is mandatory, and switching between systems is limited. If you’re just moving to Germany or considering a change in status, consulting an independent insurance broker can save you thousands.
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