Versicherungspflichtgrenze 2027: how much it rises and who it affects

Reform passed · Information guide

On 10 July 2026, the Bundestag and the Bundesrat passed Germany’s reform of public health insurance funding: the GKV-Beitragssatzstabilisierungsgesetz. This is no longer a draft bill. The new law establishes, among other measures, that the salary threshold for choosing private health insurance will make a far bigger jump in 2027 than in a normal year. This guide explains what that threshold is, how much it rises, who it affects and which dates actually matter.

What the Versicherungspflichtgrenze is — and why it matters

Germany runs two health insurance systems side by side: the public scheme (GKV, gesetzliche Krankenversicherung) and the private one (PKV, private Krankenversicherung). Most employees are required to be insured in the public scheme. That obligation ends once your gross annual salary passes a specific figure: the Versicherungspflichtgrenze, also known as the Jahresarbeitsentgeltgrenze (JAEG).

Earn above that threshold and you are free to choose: stay in the public scheme as a voluntary member, or take out private insurance. That is why this figure matters so much — it is not a tax or a contribution rate, it is the doorway to having a choice at all.

How much it rises in 2027: the figure, in context

Until now, the threshold has risen each year roughly in line with wages. What is new in this reform is an extraordinary increase added on top of the usual annual adjustment. The result, according to the estimate from the PKV-Verband (the association of Germany’s private insurers), looks like this:

The 2027 figure is a PKV-Verband estimate — around 9 % above 2026. The definitive amount will be fixed by government regulation in autumn 2026.

For perspective: in a normal year, the step from one threshold to the next is usually around 4–5 %. Here we are looking at roughly double that, because the law adds an extraordinary increase to the standard adjustment. In practice, a band of salaries that qualifies for private insurance in 2026 will fall below the threshold in 2027.

Who it affects (and who it doesn’t)

Employees above the threshold. This is the group whose rules change. If your gross annual salary is above the 77.400 € of 2026 but would sit below the estimated 2027 figure, this year you still meet the condition for choosing private insurance; from 2027, you would need to wait until your salary reaches the new threshold.

Self-employed professionals and freelancers. No income threshold applies to them at all: they can choose private insurance on any income, before and after the reform. The 2027 increase changes nothing for them.

Anyone already privately insured. If your private policy is in force before 2027 begins, you keep your right: the higher threshold does not affect you and does not push you back into the public scheme. The law protects the position of those who have already chosen.

The timeline, explained: why 30 September is the date that counts

Switching from public to private insurance is not instant: the law requires you to give your public insurer (Krankenkasse) two full months’ notice, counted to the end of a month. That produces a very specific timeline for anyone who wants to switch under the 2026 rules:

• By 30 September 2026Submit your notice to the GKV. It is the last day that leaves room to complete the switch this year.
• 30 November 2026Public cover ends, once the two months’ notice have run.
• 1 December 2026Private cover begins — still under the 2026 access conditions.

This is not a marketing countdown: it is an administrative deadline that follows from the legal notice period. Which is exactly why it is best not left to the last minute — comparing offers, completing the health questionnaire and receiving the insurer’s confirmation all take weeks. Our page on the 2026 window for switching to private health insurance walks you through the process step by step.

What to weigh up before deciding

Being allowed to choose does not automatically make private insurance your best option — nor the opposite. The answer depends entirely on your case, and these are the questions worth having answered before you sign anything:

• What would you really pay in the PKV at your age, with your health record and the cover you actually need — and how does that compare with what you pay into the GKV today?
• How does your family situation fit in: partner, children, who is insured with whom?
• Which benefits genuinely matter to you — dental, hospital, medication, reimbursements — and which tariff includes them without paying for things you will never use?
• What would happen if your situation changes later on: a change in salary, a career break, or moving back home?

Every one of these questions has an answer — but not the same one for everyone. That is why we review each case individually: we look at your situation, compare the offers on the market and answer all your questions before you decide anything. And if the conclusion is that this insurance is not the right fit for you, we will tell you exactly that — sometimes the right answer for your situation is a different one.

The reform’s other measures, one line each

The same law brings further changes within the public scheme: prescription co-payments rise to between 7,50 € and 15 € per prescription, the subsidy for dentures is reduced and, from 2028, free co-insurance for a spouse or partner no longer applies in every case (exceptions remain, for instance with children under 12). These are side issues for this decision, but they complete the picture: the public scheme will get somewhat more expensive and cover somewhat less.

Frequently asked questions about the Versicherungspflichtgrenze 2027

And if you would first rather understand the system properly — how the PKV works, what it covers, what it costs and how it compares with the public scheme — you will find the full picture in our guide to private health insurance in Germany.