Germany raises private health insurance threshold to €84,150 for 2027

Employees in Germany will need to earn more than €84,150 in 2027 to choose private health insurance, after the federal cabinet approved the new threshold. The change also lifts the maximum public health and long-term care contribution to €1,345.13 a month, increasing pressure on higher earners in the public system.

Why it matters: - The higher income threshold makes private health insurance available to fewer employees in Germany. - The change also raises the cost ceiling for public health insurance, which affects higher earners who remain in the statutory system. - For international professionals, the decision can shape coverage from the first day of work in Germany.

What happened: - Employees in Germany will need an annual salary above €84,150 in 2027 to choose private health insurance. - The new threshold is €6,750 higher than in 2026 and marks the biggest rise since 2003. - The federal cabinet approved the threshold on 7 October 2026. - The Bundesrat still must approve the change. - TheGoodBroker said the change is especially relevant for English-speaking professionals in Germany.

The details: - The threshold is officially called the Jahresarbeitsentgeltgrenze. - The threshold applies only to employees. - Self-employed people can choose private health insurance regardless of income. - An employee who starts a new job in Germany with a salary above the threshold can take private health insurance from the first working day. - Germany’s public system covers employees by law as long as salary stays below the threshold. - Above the threshold, employees may choose private health insurance instead. - Public health insurance contributions are charged as a percentage of salary up to a fixed ceiling. - Private premiums depend on age, health when the policy starts and chosen coverage, not on salary. - Employers pay half of an employee’s private premium, up to the maximum employer share of public health and long-term care insurance. - Private policy benefits are set in the contract. - Public insurance coverage is set by law. - The contribution ceiling for public health insurance rises from €69,750 to €76,500 a year in 2027. - The Federal Ministry of Health set the average additional contribution for 2027 at 2.9%, the same as in 2026. - The ministry published that figure in the Federal Gazette on 30 October 2026. - The maximum monthly contribution to public health and long-term care insurance rises from €1,226.44 to €1,345.13 for members with children.

Between the lines: - The cabinet’s higher threshold and higher contribution ceiling point in the same direction: more employees will feel the cost gap between public and private coverage. - Jonas Marx said the higher public contribution makes private health insurance more attractive for many international professionals. - The annual jump in the private-insurance threshold is unusually large, which suggests a sharper reset of eligibility rules for 2027 than in a typical year.

What’s next: - The Bundesrat must give its consent before the new threshold takes effect. - Employers and employees will then have to apply the 2027 income limits when checking health insurance options. - TheGoodBroker said an English-language overview of the 2027 changes is available in the article "What changes in German health insurance in 2027".

The bottom line: - In 2027, Germany’s private health insurance option will move further out of reach for more employees while public insurance becomes more expensive for high earners.