Premiums of private health insurance

A private health insurance is a personal protection in the case of illness. Therefore, the funding is personal. However, premiums vary from case to case. Circumstances are clear to all in Germany. An employee who takes out a private health insurance only pays half of the premium. Civil servants, too pay 50 percent. All others, such as freelancers or self-employed must pay 100 percent. Co-payment leads to lower premiums. Experts in Germany argue that co-payment should not exceed 400 Euros annually.

It is more complicated in the USA. Premiums vary depending on rates, rate schemes insurances, and employers. Employees who are insured by the employer can be in a lucky position. Sometimes, they enjoy coverage. The employer insures a whole group of staff and pays for premiums. In other cases employees must contribute to the premiums (percentage or monthly lump sum). The sum is determined by the risk structure of the employee. Other employers do not provide for insurance at all and do not bear any costs. This would not be possible in Germany because the legislator obliges the employer to bear 50 percent of the costs.

In any case the insurant (private health insurance) in the USA is confronted with co-payment (copay) and deductibles. Both are contractual payment commitments and must be followed.
Deductible is the amount that has to be paid by the insurant before the insurance company provides any service. That corresponds to the German co-payment scheme. A high-priced deductible goes hand in hand with a premium that is low-priced. In the USA, co-payment is a tool for insurance companies to prevent unnecessary treatment. It is a small amount of money which shall be paid in the case of any medical treatment. In this regard copay is similar to the German system. The insurant pays a fee once a quarter when he sees a doctor.