Choosing between private (PKV) and statutory health insurance (GKV) is one of the most consequential financial decisions in Germany – yet it is often made from the gut. These five mistakes come up again and again. The sober figures for both systems are in the GKV vs. PKV comparison; this article is about the misconceptions.
1. “Private is always more expensive”
The statutory contribution depends on income: 14.6 % plus a supplementary rate (2026 average 2.9 %) up to the contribution ceiling of €5,812.50 per month. Anyone earning that or more pays the 2026 maximum of around €1,017 for health insurance plus about €209 for long-term care (€244 without children); employees pay half, the self-employed all of it. For young, healthy people the private premium is often lower. What matters, however, is the development over 40 years and whether reserves are built up for old age. Employees may only go private if their salary exceeds the compulsory insurance threshold of €77,400 per year (2026; €84,150 planned for 2027, not yet promulgated). The self-employed and civil servants may choose regardless of income.
2. “The benefits are the same everywhere”
Statutory benefits are largely defined by law and can be changed by law. Private benefits are agreed by contract – from single rooms to specialist treatment and dental reimbursement – and cannot be cut unilaterally. What is not in the contract, you do not get.
3. “You can always switch back”
The way back is narrow. Employees return if their salary falls below the threshold; the self-employed if they take a job subject to social insurance. From age 55 the door is practically shut: anyone who would become subject to compulsory insurance then stays private if they were not in the statutory system during the previous five years (§ 6 (3a) SGB V). Going private is a decision for life.
4. “Health questions can be taken lightly”
Incorrect or incomplete answers can cost your cover later: with intent or gross negligence the insurer may withdraw from the contract up to five years after conclusion, ten years in case of fraud (§§ 19, 21 VVG). See Your rights when taking out insurance.
5. “Civil-servant allowances don’t matter”
For civil servants the state allowance (Beihilfe) changes the calculation entirely: the federal employer covers 50 % of medical costs for active civil servants, 70 % for pensioners and spouses, 80 % for children (§ 14 Federal Allowance Ordinance; the Länder partly differ), and the private insurer only the rest. In the statutory system this subsidy exists only in the Länder that pay a flat-rate allowance towards the contribution. Ignoring it leaves potential on the table.
How to proceed
- Clarify your status: employee above or below €77,400, self-employed, civil servant?
- Calculate 40 years, not one month – including family planning (children are co-insured free of charge in the statutory system, not in the private one).
- Compare benefits in writing, not brochures.
- Check the way back before you leave – from 55 there is none.
General information, not legal, tax or investment advice. Sources: Social Insurance Reference Values Ordinance 2026, Federal Ministry of Health (average supplementary rate 2026: 2.9 %), § 6 (1) and (3a) SGB V, §§ 19, 21 VVG, GKV-Spitzenverband, consumer advice centres, Finanztip – as of October 2026. 2027 values are marked as planned. There is no blanket “better” – only the solution that fits your income, life planning and health. Get in touch.
