Glossary
Insurance glossary.
Definitions of key terms around German health insurance.
Statutory Health Insurance
Statutory health insurance mandatory in Germany for employees and workers. Covers basic healthcare services with contributions based on income.
Private Health Insurance
Private health insurance for self-employed, civil servants, and high earners above the income threshold. Offers flexible coverage but premiums increase with age.
Additional Contribution
An additional percentage-based contribution that health insurers can charge if revenues are insufficient. Varies by insurance company and is typically 1-2% of income.
Income Threshold for PKV Eligibility
Annual income threshold (2026: €77,400) above which employees can opt for private insurance. Once this threshold is crossed, employees have the choice between statutory and private insurance.
Dental Insurance Supplement
Private insurance that covers dental treatments, prosthetics, and orthodontics beyond what statutory insurance provides. Common supplements include coverage for crowns and implants.
Supplemental Insurance
Private insurance policies that fill gaps in statutory health insurance coverage. Examples include dental, travel abroad, and hospital supplements. Premium varies based on age and health status.
Optional Tariff
Optional insurance plans within statutory insurance (GKV) that allow cost savings. Examples include deductible plans and bonus refund plans. Usually locked for 36 months.
Deductible
An amount you pay out-of-pocket before insurance covers costs. Choosing a deductible tariff in GKV can save up to €600 per year but locks you in for 36 months.
Health Insurance Company
An insurance company that provides statutory health insurance coverage in Germany. There are approximately 93 health insurance companies, each with different contribution rates and benefits.
Contribution Rate
The percentage of income paid as health insurance contribution. 2026: approximately 14.6% (7.3% employee + 7.3% employer). Additional contribution rate varies by insurer.
Family Insurance
Free coverage for spouses and children under statutory insurance when their income is below a certain threshold (€665 in 2026). No additional premium required.
Bonus Program
Preventive programs where insured members receive cash back for routine health check-ups, fitness activities, vaccinations, or dental cleanings. Bonuses can reach €600 per year.
Long-Term Care Insurance
Mandatory insurance covering costs of care services for disability or old age. Statutory insurance provides basic coverage; supplemental private insurance can bridge the gap (average €3,245/month in care homes).
Sick Leave Benefit
Payment during extended illness. Statutory insurance pays maximum €135.63 per day (70% of gross income). Supplemental insurance can cover the gap for those with higher incomes.
Contribution Assessment Limit
Contribution assessment limit above which contributions are not calculated. In 2026, this limit is €62,100 per year. Higher earners still pay contributions on this amount, not on actual income.
Expatriate
A person living outside their home country. Expats in Germany need special health insurance such as EDUCARE24, Feather, or private PKV plans. Chancenkarte holders have specific requirements.
Chancenkarte (Opportunity Card)
German visa for skilled workers from non-EU countries. Holders need special health insurance (not statutory insurance). Common options include EDUCARE24, Feather, or ottonova PKV.
Employer Health Benefit
Employer-funded supplemental insurance for employees. Offers no medical underwriting and provides tax advantages (€50/month tax-free). Benefits vary by employer plan.
Unemployment Benefit
Unemployment benefit paid by German labor agency. Health insurance is automatically provided through the agency. After benefits end, Hartz IV (Bürgergeld) takes over.
Basic Subsistence Benefit
Social welfare benefit for those without income or with very low income. Health insurance is automatically included and paid by the government (Jobcenter). Beneficiaries can choose any Krankenkasse.