Private Health Insurance Threshold 2027: Who Can Still Switch Before the Deadline – and Who Can’t

You got a raise this year. Your gross salary is now €80,000, comfortably above the €77,400 limit for private health insurance in 2026. A colleague tells you to switch before New Year. For many employees in this situation, that advice is wrong – and the reason has nothing to do with the new 2027 figure alone.

The rule most people miss: crossing the threshold is not enough

Compulsory insurance (Versicherungspflicht) does not end the moment your salary passes the threshold. It ends at the end of the calendar year – and only if your salary will also be above the threshold that applies in the following year.

In a normal year, this second condition rarely matters. In 2027, the threshold rises by €6,750 at once. That turns a technical detail into a decision point for many employees earning between €77,400 and €84,150.

2026 vs 2027: the planned values

Annual gross values. Approved by the Federal Cabinet on 7 October 2026; binding only after Bundesrat approval and publication in the Federal Law Gazette.

Why the big jump? On top of the usual wage indexation (4.38 percent), the GKV Contribution Rate Stabilisation Act adds a one-off increase of €300 a month to both health insurance thresholds.

Who can still switch – and who can’t

What counts as your salary

The test uses your regular annual gross pay: your monthly salary times twelve plus guaranteed extras, such as a contractual 13th month salary. Bonuses that are not guaranteed are generally left out. Your employer makes the assessment.

Already private? The new grandfathering rule

Employees who are exempt from compulsory insurance and privately insured on 31 December 2026 keep a lower threshold. For them, the planned 2027 threshold is €80,550 – the regular wage indexation without the extra €3,600.

If your 2027 salary falls below €80,550, you become compulsorily insured. In that case you can generally apply for an exemption (Befreiung von der Versicherungspflicht) within three months, so by 31 March 2027. Think carefully before you apply: an exemption is generally binding for as long as the employment lasts.

Starting a new job around the turn of the year

If your job in Germany starts in 2026 and your expected regular salary is above €77,400, you are exempt from the start and free to choose private insurance. If you are privately insured on 31 December 2026, the €80,550 threshold applies to you from 2027. A job that starts on or after 1 January 2027 is measured against €84,150.

Because start dates and contract details matter here, confirm your status with your employer before you sign a private policy. Arriving from abroad? Our guide to health insurance for your German visa explains how to stay covered until your job begins.

What to do in November and December

1. Check your statusFind out whether you are a compulsory or a voluntary member today.
2. Check your 2027 salaryCompare your regular gross salary with €84,150, or with €80,550 if you are already privately insured. Then check what each system would cost you with our GKV vs. PKV calculator.
3. Start earlyPrivate insurers assess your health before they accept you. Questionnaires, medical records and underwriting can take several weeks.
4. Mind the notice periodLeaving public insurance requires notice to your fund. Ask your fund for the exact date, and make sure your private policy is in force by 31 December 2026.
5. Tell your employerPayroll needs to set up the employer subsidy for private insurance.
6. Watch 20 NovemberThe Bundesrat is expected to decide on the new values that day.

If you stay public: what changes for you

The official average additional contribution (Zusatzbeitrag) for 2027 is fixed at 2.9 percent, unchanged from 2026. Together with the higher contribution ceiling, the maximum employee share for health insurance rises:

For salaries at or above the contribution ceiling, based on 14.6% plus the average additional contribution of 2.9%, employee half. Long-term care insurance comes on top; your own fund may charge more or less than the average.

Want to compare both systems with your own numbers? Try our GKV vs. PKV calculator (public vs. private health insurance).

Before you decide: a choice for decades

A deadline is a poor reason to change systems. Private insurance can be a very good fit, but the decision should rest on your life, not on the calendar:

• Family: Public insurance can cover a non-working partner and children free of charge. In private insurance, everyone pays their own premium.
• Health: Pre-existing conditions can lead to surcharges or exclusions.
• Coming back: Returning to public insurance later is restricted, and from age 55 it is generally no longer possible.
• Plans: Part-time work, parental leave or leaving Germany affect both systems differently.

Our Health Insurance Guide 2027 compares both systems in detail, and the GKV vs. PKV calculator shows the numbers for your situation.

For HR and global mobility teams

Many offers for engineers, developers and specialists land between €77,000 and €85,000. From 2027, “you can choose private health insurance” is only true above €84,150. Expect questions from employees who received a raise in 2026 and assume they can switch at New Year: as compulsory members, most of them cannot. Update offer templates and relocation information now. More for employers: finanXpats for employers & relocation agencies.

Frequently asked questions