What you should know:

Statutory health insurance is facing growing challenges. Forty-two health insurance companies have already raised their premiums as of January 1, 2026, and forecasts predict that the statutory health insurance premium rate could reach up to 26 percent by 2050—with benefit cuts considered a realistic scenario. The reason is structural: Under the pay-as-you-go system, younger people finance the costs of older people without setting aside reserves for the future. Demographic change is exacerbating this problem year after year.

Private health insurance works fundamentally differently. Under the funded system, every insured person builds up aging reserves in their younger years—a form of provision that remains stable regardless of demographic fluctuations. The premium depends on the selected plan, the age of enrollment, and the state of health, not on income.

The difference in benefits is also crucial: In statutory health insurance (GKV), the legislature determines what is reimbursed—and has gradually reduced this scope over decades through reform laws. In private health insurance, benefits are contractually guaranteed and can be selected individually. You decide for yourself what coverage you want—from treatment by a chief physician to vision aids and preventive checkups. Your doctor can treat you according to the principles of medical practice without the restrictions of the statutory health insurance’s cost-effectiveness requirement.

The result: According to PwC’s Healthcare Barometer 2025, 93 percent of privately insured individuals feel well-protected—compared to 86 percent in the statutory health insurance system.