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