What are insurance back payments in Germany?

So, what are insurance back-payments?

Back-payments are fees triggered after someone living in Germany without health insurance tries to sign up for public healthcare or GKV. Since health insurance is required by law for living in Germany, back-payments are a way for the health fund to retroactively collect “missed” payments.

Back-payments don’t occur when you sign up for private insurance. For more on that, keep reading.

Why does someone have to make back payments?

The logic goes something like this: Since you would have been treated in the event of an accident or catastrophic diagnosis during the time that you had no health insurance, you need to pay back for this time. We know how silly may seem, but it’s the law. Since having health insurance is mandated by law for living in Deutschland, there are no two ways about it — you’ve got to pay up.

When do back payments typically occur?

Since there are no health insurance police checking people for coverage, the most common time that back payments get issued is when is joining a public health fund, or Krankenkasse.

It usually goes something like this: After signing up for public insurance, the company, or Krankenkasse, will check your previous health insurance against the date that you entered Germany (mentioned on your anmeldung). If they notice that you were uninsured during this time then a back-payment will be calculated and issued.

Note: If you are self-employed then you alone will be responsible for the back payments. If you are employed and signing up after you started work, then your employer will be responsible for half of the payments.

How much are insurance back payments?

It all depends on exactly how much time you have not been covered in since you registered in Germany. The health fund, or GKV, will then charge you roughly 50% of what you should have paid for that time. For example, if you have been uninsured for 6 months and you’re new health policy is 450 euros per month then you will owe about 1350 euros in total.

That’s 50% of 6 months x 450 euros (new monthly rate) = 1350

How can I avoid back-paying?

The only guarantee to avoiding these dreaded back payments is to sign up for health insurance from your first day in Germany onwards. This is easy if you are moving to Germany for a job or to study at a Uni since you’re employer/school will be obligated to check if you have health insurance.

If you are anyone else (i.e. unemployed, self-employed or other) then here’s what you should do: sign up for incoming, or expat health insurance.

Why? Because this type of insurance will fulfill the legal requirement for living in Germany, but unlike private health insurance, it will not prevent you from joining the public system later on. You’ll get basic coverage while you find your legs in Germany.

Sign up for expat health insurance for 72 euros/month here. Cancel anytime.

When you find a job or decide to stay a freelancer (EU only) then you can easily switch to public health insurance and not have to backpay.

Ready to switch to public heatlth insurance? Sign up easily here.

A couple of related things…

What if I join a private health fund instead of a public one?

Well, that’s a magic bullet. In this case, you could avoid all back paying entirely, but not without any drawbacks. You see, not everyone qualifies for private health insurance, and even those that do — taking out a policy is not always recommended*.

*You see, private health insurance can get super expensive as you get older — in fact much more than public at a certain age. For employed people, you have to be making more than 5062 euros/month to even join in the first place. Self-employed or freelancing? Most private insurers won’t accept you unless you make 2500+ euros/month. Private health insurance is really only recommended if you are young, healthy, earning loads of money and intending on leaving Germany before you get old.