Attention: Massive increase in contributions for private health insurance from July – What is now threatening!

Attention: Massive increase in contributions for private health insurance from July – What is now threatening!

From July 1, 2025, it will be considerably more expensive for those with private insurance: the monthly contributions in Standard tariff for private health insurance (PKV) increase by a whopping 25 percent, which increases the contribution from the previous 400 euros to 500 euros. This applies not only to the standard tariff, but also to the basic tariff. While this increase raises concerns, it is also important to remember that there was already an adjustment last year, which was 9.3 percent.

The standard tariff was originally introduced in 1994 with the aim of providing coverage for older insured people with limited income. Around 53,900 people are currently using this tariff, which has established itself as a social tariff. Adjustments to private health insurance contributions are regulated by law and may only be made if the actual benefit expenditure exceeds the original calculation by at least 10 percent. This regulation is intended to ensure that insured persons are protected from undue price increases.

Background to the premium increase

The main reason for the increase in private health insurance contributions is the increased hospital costs. According to that PKV Association Spending in the hospital sector has already increased by over 13 percent in 2023. Particularly noticeable are the costs of care, which have increased by 37.5 percent in the last two years. It can also be observed that the number of hospital treatments that can be planned, such as knee endoprostheses, has increased significantly in 2023. These facts mean that both private and statutory health insurance companies are coming under pressure.

The average contribution in the standard tariff reflects these developments and is recalculated according to the actuarial rules. It is worth noting that the legal framework for contribution adjustments stipulates that such adjustments are only permitted if benefit expenditure or life expectancy differ by at least 5 percent. In 2025, around two thirds of all private health insurance tariffs will be forced to increase contributions.

A look into the future

Another weak point of the current situation is that, unlike statutory health insurance, private health insurance does not receive any tax subsidies. This means that the financing gaps caused by rising costs must be closed through premium adjustments alone. The Online private health insurance service also explains that the non-contributory periods remain for long-term insured people, even if access to the standard tariff was closed for privately insured people after December 31, 2008. The basic tariff is offered as an alternative and is based on the benefits of statutory health insurance, but also with corresponding price increases.

It is advisable for anyone affected by the premium increases to review their existing contracts and consider alternatives. In particular, the need for additional insurance components should be questioned in order to best manage the financial burden. Comprehensive advice and tariff analysis can help to find the right solution and avoid unpleasant surprises.