Affording Health Insurance: Strategies to Reduce Expensive Premiums
Do you feel like you're paying too much for your health insurance? It might be worth reaching out to your insurer before the situation gets more complicated. Many times, there are ways to lower your premium.
Though it's mandatory to have health insurance in Germany, not everyone complies with this law. In 2019, the Federal Statistical Office reported around 61,000 people without statutory or private health insurance, and there could be many more unreported cases. These individuals will face financial troubles when they need medical attention. And it's not ideal for it to get to that point.
Self-employed, freelancers, and unemployed individuals are the most common targets of this issue. When their income is inconsistent or nonexistent, they might find it hard to cover their insurance premiums. Some people with voluntary health insurance (GKV) and those with private insurance can request a lower payment. The German Insurance Association (BdV) suggests reaching out to the insurer if a challenging financial scenario seems imminent.
Cutting back on contributions: premium reduction in statutory health insurance
Universal health insurance contributions in Germany aren't influenced by the benefits, age, or health of the insured. Instead, it relies solely on income. This makes it much more challenging for self-employed and freelancers, whose earnings can change drastically from year to year.
If a person pays high contributions to statutory health insurance due to a good financial year, they may struggle with these payments when business slows down. For individuals with voluntary GKV insurance, they can request a reduction in premiums.
The North Rhine-Westphalia consumer advice center states that applicants need to show that their actual income this year is likely to be at least 25% lower than their stated income in the last tax declaration. Proof could be as simple as a notification of advance income tax payment.
Benefits cut: premium reduction in private health insurance
Private health insurance (PKV) premiums often go hand-in-hand with lesser benefits. Those who switched to private health insurance prior to January 1, 2009 can potentially move to the standard tariff of private health insurance. With these benefits, the expenses match those of statutory health insurance. The maximum monthly contribution is capped at 755.56 euros.
For those who can't support themselves from their income and assets, they could switch to the basic PKV plan. This, too, has benefits similar to statutory health insurance. Monthly contributions cannot exceed half of the maximum contribution for statutory health insurance (2024: €377.78).
Choosing the right tariff: standard, basic or emergency?
Private health insured individuals who switched to private health insurance after 2009 can also opt for the basic tariff. They're not required to have any specific financial need. However, those who receive social welfare assistance might receive subsidies or the complete coverage of their private health insurance contributions.
Also, those who haven't paid their premiums for months on end could be moved to the emergency tariff. This only covers costs for acute illnesses, pain, pregnancy, and maternity.
Children and young people may benefit from more considerable benefits. The average premium for this is about 135 euros per month, with deductibles and risk surcharges suspended. However, these changes can't be initiated by the insured person themselves. Only those in need of assistance can access the emergency tariff.
Aiding the uninsured
Individuals who've been uninsured for years and plan to return to statutory or private health insurance eventually will have to make up for their missed payments - even if they didn't receive any medical assistance during that time. The North Rhine-Westphalia consumer advice center points out that these outstanding costs can mount up to substantial sums. In some cases, they can be spread out over a period of payment.
Often, individuals without health insurance can find help from charitable organizations. Groups like Doctors of the World, Malteser, Caritas, or Johanniter offer voluntary healthcare to people without insurance at various offices or mobile practices. These organizations can be found online.
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- Some individuals may seek assistance from statutory health insurance companies to reduce their premium payments if they're self-employed, freelancers, or unemployed and are facing financial difficulties.
- Consumer centers, such as the one in North Rhine-Westphalia, advise that applicants for premium reduction in statutory health insurance should demonstrate a predicted income decrease of at least 25% compared to their last tax declaration, using proof like a notification of advance income tax payment.
- Individuals with private health insurance (PKV) who have been consistently unable to cover their premiums might be eligible to switch to a basic PKV plan, which offers benefits similar to statutory health insurance and has capped monthly contributions.
- Legal issues can arise when individuals who have been uninsured for an extended period and wish to return to either statutory or private health insurance must repay their missed payments, which could potentially amass substantial sums. However, charitable organizations like Doctors of the World, Malteser, Caritas, or Johanniter can provide voluntary healthcare to some of these uninsured individuals.
Source: www.ntv.de
