The income threshold for compulsory health insurance will rise to 77,400 euros in 2026.

With the renewed increase in the income threshold for mandatory health insurance, the number of employees who even have the option of switching to private health insurance (PKV) is shrinking. Since 2013, this income threshold has risen by more than 48 percent: from €52,200 then to €77,400 in 2026. In other words, starting next year, employees will have to earn around €2,100 more per month than in 2013 to be able to choose private health insurance.

Previously, the threshold was significantly lower. Until the end of 2002, the income threshold for mandatory health insurance and the contribution assessment ceiling for statutory health insurance (GKV) were identical. It was only with the reform implemented by the red-green coalition government at the turn of the year 2002/2003 that these two figures were separated – and the income threshold for mandatory insurance was raised proportionally more. This policy was a deliberate attempt to limit the number of employees with a free choice between statutory and private health insurance. The range of options was thus considerably restricted.

With the significant increase in the income threshold for mandatory health insurance in 2003, policymakers have noticeably restricted the choices available to insured individuals: since then, employees generally remain compulsorily insured under the statutory health insurance system for considerably longer periods. This has also negatively impacted the previously well-functioning competition between statutory and private health insurance.