| About 87 percent of the residents of Germany | | | | between 13 and 14 percent of a worker's gross |
| have statutory health insurance, i.e. GKV. As | | | | earnings up to the contribution assessment |
| of May 2005, the GKV relied on 321 non-profit | | | | ceiling (2006: EUR 3,562.50 monthly / EUR |
| sickness funds to collect premiums from their | | | | 42,750.00 p.a.). Premiums are fixed according |
| members and pay health care providers | | | | to earnings rather than risk and are |
| according to negotiated agreements. Those who | | | | unaffected by the respective member's marital |
| are not insured this way, mainly civil | | | | status, family size, or health. Premiums are |
| servants and the self-employed, receive | | | | the same for all members within a particular |
| health care through private for-profit | | | | fund with the same earnings. |
| insurance. | | | | |
| | | | Germany's private health insurance |
| An estimate of 0,3 percent of the German | | | | |
| population (around 250,000 people) has no | | | | About eleven percent of Germany's residents |
| health insurance at all. Some of them are so | | | | pay for private health insurance provided by |
| rich that they do not need it but most of | | | | some 40 for-profit insurance carriers. Many |
| them are poor and receive health care through | | | | of those choosing private insurance are civil |
| social assistance. | | | | servants who want to secure percentage of |
| | | | their medical bills not covered by the |
| Germany's statutory health insurance | | | | government. Some sickness-fund members buy |
| | | | additional private insurance to cover such |
| There are three different categories of | | | | extras as a private room or a choice of |
| sickness funds: primary funds, substitute | | | | physicians while in a hospital. Otherwise, |
| funds and "special" funds. Some workers are | | | | the medical care provided to the publicly and |
| required to be members of the primary funds, | | | | privately insured is identical. In both cases |
| e.g. if they earn less than the than the | | | | the same medical facilities are used. |
| income ceiling (2006: EUR 3,937.50 per month | | | | Self-employed persons earning above the |
| EUR 47,250.00 per year). Those earning more | | | | income ceiling must have private insurance. |
| than that ceiling may be members on a | | | | Members of a sickness fund who leave it for a |
| voluntary basis, or they may have a choice of | | | | private insurance carrier are not allowed to |
| funds. Some of them automatically become | | | | return to public insurance. |
| members of a particular fund for example | | | | |
| because of their occupation (company-based | | | | As opposed to the statutory heath insurance, |
| funds) or place of residence (local sickness | | | | contributions to the private insurance depend |
| funds). Some occupations have their own | | | | on the member's age, gender, occupation and |
| "special" funds, e.g. farmers or sailors. | | | | health status, that is, the individual risk. |
| | | | Although private insurance companies pay |
| Substitute funds are divided into two kinds: | | | | health care providers about twice the amount |
| they provide health insurance to both white | | | | paid by the primary sickness funds, private |
| collar workers and blue collar workers | | | | insurance is often cheaper than statutory |
| earning more than the income ceiling. | | | | health insurance, especially for younger |
| Membership is voluntary. | | | | policyholders without dependents. As is the |
| | | | case for members of sickness funds, employees |
| Both, employers and employees pay half of a | | | | who have private insurance have half their |
| member's premiums, which in 2006 averaged | | | | premiums paid by their employers. |