For most self-employed professionals this is one of the highest costs.
Here you find guidance on what type of health insurance you can get and how to deduct it.
Unlike employees who are covered through their employers, freelancers and entrepreneurs must arrange their own comprehensive health insurance coverage. There are two options available:
Public Health Insurance in Germany (GKV):
Solidarity system: The GKV is a popular choice because of its “everyone contributes, everyone benefits” approach.
Who’s covered? This system predominantly caters to workers, ensuring a wide coverage for the German workforce.
Income-based contributions: Your monthly payments are determined by your earnings, but there’s a cap to ensure fairness.
Private Health Insurance in Germany (PKV):
Customized Premiums: With the PKV, your premium is uniquely tailored based on age, health history, and chosen benefits.
Flexible coverage: This option allows for more personalised plans, accommodating those who want treatments like alternative medicine or premium hospital care.
What about health insurance for part-time self-employed freelancers in Germany? Even if you freelance on the side, your primary job’s insurance setup has got you covered.
Before choosing between the public (GKV) and private (PKV) health insurance options, consider the long-term implications. Initial savings from the PKV for younger professionals can shift to higher costs in later years. So it’s important you take an informed decision.
Age |
Public Health Insurance (14% of Income) |
Private Health Insurance (Minimum Coverage) |
Private Health Insurance (Premium Coverage) |
26 years old |
€198 – €918 |
€223 – €859 |
Higher than €859 |
56 years old |
€198 – €918 |
€503 – €1,402 |
Higher than €1,402 |
Aspect |
Private Health Insurance |
Public Health Insurance |
Cost Factors |
Age, coverage level, pre-existing conditions |
Income, contributions based on total earnings |
Cost Flexibility |
Premiums based on chosen coverage and services |
Contributions may vary based on total income |
Tax Deductibility |
Premiums partially deductible as business expenses |
Contributions fully deductible as business expenses |
Income Dependency |
Not directly tied to income |
Contributions based on total earnings |
Age-Based Premiums |
Premiums may increase with age |
Not affected by age |
Coverage Customisation |
Customizable coverage options |
Standardized coverage provided |
Switching Difficulty |
Can be challenging to switch back to public |
Switching to private insurance is more flexible |
Healthcare Providers |
Wide network of private healthcare providers |
Limited to providers within public network |
Eligibility Criteria |
Based on self-employed status and income |
Requires certain employment history and income |
What options do I have as a self-employed individual for my health insurance?
As a self-employed person, you can choose between private and public health insurance. The decision depends on your income, age, and other factors.
Is private health insurance always more expensive than public health insurance?
No, private health insurance for self-employed persons is not inherently more expensive than public insurance. Especially with a moderate to high annual income, the private option could be more cost-effective.
What requirements must be met in order to opt for public health insurance?
To voluntarily enter public health insurance when self-employed, you must have been insured under public insurance for at least two out of the last five years or have been insured before starting your self-employment.
How are the costs calculated for public health insurance for self-employed individuals?
The costs are based on your earnings, including all sources of income. The contributions can be deducted from taxes since self-employed individuals pay higher contributions compared to employees.
Can I switch from public to private health insurance as a self-employed individual?
Switching from public to private health insurance is possible, but there are specific requirements. You must be under 55 years old, meet a certain income threshold, and not have been insured under public insurance for the past five years. Reverting back to public health insurance comes with certain challenges.
Example: When does public insurance makes sense for self-employed professionals
Here is an example of when public health insurance may be a favorable choice for self-employed professionals:
Maria is a graphic designer. She is considering her health insurance options as she becomes self-employed. Let’s examine why Maria might choose public health insurance over private insurance in this case:
1. Income level: Maria’s income is relatively low, especially during her first years of self-employment. Public health insurance premiums are calculated based on income, which means that Maria’s contributions will be proportionate to her earnings. Private insurance, on the other hand, generally charges premiums based on factors like age and health status, and they tend to be higher, making them less affordable for individuals with lower incomes.
2. Stability and predictability: Public health insurance is more stable and predictable because it is based on income and are subject to a cap. In contrast, private insurance premiums can increase significantly with age.
3. No discrimination based on health: Public health insurance cannot deny coverage or charge higher premiums based on pre-existing health conditions.
4. Family considerations: If Maria has a family, public health insurance often provides family coverage at no extra cost. Private insurance policies usually require separate premiums for each family member.
5. Flexibility: If Maria’s income fluctuates, her public health insurance contributions will adjust accordingly. So she can continue to afford health insurance even during periods of lower income.