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Public health insurance premium depends on two factors

• Your income
• Your public insurer's additional contribution

In 2024, one out of four public health insurance providers increased the additional contributions. Some insurers increased the premium twice in 2024.

To make matters worse, the German government has announced that the maximum income threshold will be increased from 5175€ to 5512.5€ in 2025. The maximum income threshold is the maximum income insurers consider when calculating the premium.

So, high earners (earning more than this amount) will pay more premiums in 2025.

One out of every four public health insurers increased their premium

Normally, public health insurance companies change their premiums once at the beginning of the year. However, in 2024, almost one in four public insurers increased their monthly contributions in the middle of the year.

To give you an idea, in 2023, only one public health insurance company increased its premium during the year.

Here are some of the big increases:

• Barmer additional contribution rose from 1.5 to 2.19%
• AOK Rheinland/Hamburg additional contribution rose from 1.8 to 2.2%
• KKH's additional contribution rose from 1.98% to 3.28% in August
• BKK24's additional contribution rose from 1.89% to 2.55% in August
• BKK Wirtschaft & Finanzen increased from 1.99% to 2.99% in September

As compared to these health insurers, TK's additional contribution is only 1.2%. You save up to 1000€ per annum by switching to a cheaper public health insurer.

Use our public health insurance cost calculator to check how much you are paying for your current health insurance and how much you can save by making the switch.

High earners will pay 790€ more from 2025

Increasing the maximum income threshold from 5175€ to 5512.5€ means a premium increase of 590€ per annum for high earners. Self-employed individuals have to bear this burden alone. For employees, their employers share this burden equally.

So, even if you are insured with the cheapest public health insurer, your contributions will still increase in 2025.

The 590€ increase is from the health insurance contributions alone. If you add "long-term nursing care" and "additional contributions", high earners will pay around 790€ per annum more in 2025.

You can learn how the health insurance premium is calculated here.

Why is the public health insurance premiums increasing?

Here are two main reasons

• Increase in healthcare expenditures due to inflation and increasing old population.
• Public health insurance providers' reserves have shrunk drastically. In the first half of 2024, the health insurance companies recorded a deficit of 2.2 billion euros.

Public health insurance companies must compensate for the increased expenditures. The quickest way to do so is to adjust the additional contributions.

The average additional contribution has now increased from 1.7% to 1.78%.

What you can do if your premiums increase

If your public health insurance company increases the additional contribution, you can switch to a cheaper public insurer. Simply fill out the form and submit it online. Your new insurance company will take care of the rest, even canceling the old health insurance.

We find TK the best public health insurer for expats in Germany. It offers English customer support, a website, and a mobile app. You can switch to TK easily by submitting the registration form online here.

Should you switch from public to private health insurance?

Switching to private health insurance usually makes sense for high-earners. However, you should not assume that private insurance premiums won't increase in 2025.

Healthcare expenditures are increasing. So, private insurers also have to increase their premiums.

However, switching to private health insurance has other benefits, such as faster appointments (within a week), better treatment options, lower premiums for high earners, etc. However, additional parameters must be considered before switching to private insurance.

You can use our "Health Insurance Finder" tool to check which insurance makes sense for you. You should also consult an insurance broker for personalized advice.

Insurance brokers are liable for their advice. This means if the broker didn't recommend the plan based on your needs, they are liable to pay the damages. You can book a call with the insurance broker we recommend here.

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