Your insurance premium is the regular fixed or contractually agreed amount you pay for health insurance
Most people pay their premiums on a monthly basis. Your monthly premiums are determined by various factors, including your age, whether you have any existing health conditions, the tariff you select and, in Germany, which health insurance system you select.
In the public health insurance system, your premiums are calculated as a percentage of your salary. The current contribution rate is 14.6% of your gross monthly income, plus an average surcharge of 1.70%. The average surcharge will presumably rise every year because of the rising costs in health and the demography. Premium calculations take into account your income up to €62,100per year. It also rises almost every year. So, if your annual salary is above this figure, you reached the highest possible contribution rate. Employers contribute 50% of their publicly insured employees’ premiums.
In the private health insurance system, you contractually agree your premiums with your insurance provider. This means you can select the best level of cover for your needs and financial situation. As in the public system, employers contribute 50% of an employee’s premiums – up to the maximum amount they would contribute for a publicly insured employee.
