The government is allocating a specific sum of money to private hospital health benefits premiums. This is, however, dependent on your incomes, this is known as health fund rebate.

If, as an employee, you earn less than a certain limit, you must take out mandatory statutory health insurance.One speaks of the compulsory insurance limit. This changes annually, and in 2018 was gross annual earnings of € 59,400.

You then have to decide to become a member of one of the various statutory health insurance companies. 

If your earnings are above this limit, you can either choose private health insurance or – if you meet the relevant previous insurance periods – become a voluntary member of statutory health insurance.

Even as an entrepreneur or a civil servant, you are not compulsorily insured, but can either – if you meet the relevant requirements – become a voluntary member of statutory health insurance or choose private health insurance.

Health Insurance Contribution

There is a general contribution rate of currently 14.6% for all statutory health insurance companies. Employers and employees share this. However, the maximum health insurance contribution is limited up to a certain income. This limit is called the contribution assessment limit and also changes annually. In 2018 it was € 53,100 annual incomes.

The health insurance companies can levy additional contributions that are borne by the employee alone. 

The health insurance contributions are deducted directly from the salary.

If you take out voluntary, statutory health insurance, you will pay between approx. 150 and 710 euros based on your income in 2015. As a worker, your boss will pay a share. As a self-employed person or civil servant, you have to contribute yourself.

The statutory health insurance is based on financial performance. Those who earn more pay a higher contribution. Those who earn less pay a lower contribution. In certain situations, premium-free insurance or free family insurance is even possible.

In private health insurance, the contribution depends heavily on the individual situation, particularly on the state of health. As a rule, a health check is carried out to determine the amount of the contribution. If you are “young and healthy,” your contributions will be cheap. However, in old age (Retirees), the contributions to private health insurance increase because this tends to cause costs. There is no free family insurance in private health insurance.

If you have opted for private health insurance, switching to statutory North Sydney health insurance is usually impossible.This also applies if you only take out private insurance abroad. The legal situation in North Sydney is very strict in this regard. If you have exceeded the age limit of 55 years, the way back to statutory health insurance is blocked under the law. If this age limit is not exceeded, a return is possible under very strict conditions.

Benefits of health fund rebates

The health insurance companies provide the insured with benefits, provided that these are not the responsibility of the insured. The services’ quality and effectiveness must correspond to the generally recognized state of medical knowledge and take into account medical progress.  Other benefits include;

• Benefits for the prevention of diseases and their aggravation and contraception, sterilization, and termination of pregnancy.

• Services for the early detection of diseases. These include health examinations and child examinations.
• Illness treatment benefits. This includes both medical treatment and sick pay.