Switching Health Insurance Funds: Is It Worth It? 🏥💰
Health insurance premiums can vary significantly from one fund to another in Germany. With some research, you could potentially save hundreds of euros per year. The popular finance magazine "Finanztest" discovered this in their latest issue (1/2024).
In December, health insurance companies often decide whether to keep their premiums steady or adjust them for the upcoming year. If your current health insurance provider announces a premium hike, it may be worth considering different options.
The magazine reveals that the minimum premium contribution rate for statutory health insurance is currently 15.58% of gross income (HKK), while the maximum is 16.59% (BKK excl.). Even at a net income of €2,000 per month, switching to a less expensive plan could save you around 142 euros annually. The savings might be even greater for higher-income earners, such as those making €3,000 per month, with potential savings of about 214 euros yearly.
However, the premium amount isn't the sole deciding factor.
If your insurance provider raises their premiums, you have the right to leave them, provided you've been a member for less than a year. After 12 months, a special right of termination no longer applies.
To move to a new provider, simply apply to the new fund. The process is straightforward; there's no need for a separate termination notice. The receiving fund will contact your current provider and inform you about the effective date of your new membership. Then, you should inform your employer of the change.
But don't rush into a decision without considering the entire picture.
While switching to save money can be tempting, it's essential to evaluate more than just the premiums. Service quality, availability, and additional benefits are just as crucial. You must be thoughtful and patient when selecting a health insurance provider.
What Else to Keep in Mind?
As an employee, consider the financial implications of switching health insurance funds if your current provider announces increased premiums.
- You should not be solely focused on loyalty rate results when choosing a new health insurance company. Instead, you should also consider the extra benefits, service, and accessibility offered by different statutory health insurance companies.
- Keep in mind that employers should be informed about any changes to their employees' health insurance providers.
- Seeking advice from health insurance advisors can be helpful in making informed decisions about switching health insurance funds and managing financial contributions.
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Additional Data:
- Switching between different statutory health insurance funds within Germany's public system is unlikely to result in significant savings. This is because premiums are usually standardized and income-based.
- Private health insurance could potentially save you money if your income exceeds the contribution assessment ceiling (currently €66,150 annually or €5,512.50 monthly, as of 2025). However, this would mean giving up employer subsidies.
- Private health insurance allows for more customizable coverage, which might be beneficial for some individuals. But this customization does not necessarily translate to lower premiums.
