In Germany the “compulsory insurance for all” was introduced by law almost 10 years ago. Anyone wishing to change their health insurance (KV) has a difficult time, because without new insurance cover, the cancellation will not be effective with the previous KV. This applies especially to people who are 55 years old or older, who often find it impossible to return to the statutory health insurance (GKV).
It is not uncommon for the amount of the private health insurance contribution to exceed the pension income in old age. The increase in private health insurance contributions by about 7.5 % p.a. in old age as an empirical value is legally determined by the calculation regulation (KalV) on the basis of formulas – this is therefore also called the actuarial old-age problem of private health insurance. Those who return to the GKV in old age or earlier will save expenses of up to more than € 250,000 for the rest of their lives;
Hundreds of thousands of people with private health insurance turn to their private health insurance because they can no longer afford or are no longer willing to pay the premiums that become more expensive with increasing age. Comprehensive advice on changing tariffs should be given, because there is a legal entitlement to this if a need is identified, §§ 6, 204 VVG – including liability of the PKV for incorrect advice.
The ways out of private health insurance are manifold and possible at almost any age. For example, a residence abroad can help, with statutory insurance requirements there. However, this has a few side effects, such as when the centre of life changes, the risk of double taxation arises.
Alternatively, the pensioner can take up pro forma employment abroad for a certain period of time for 10 € per hour, which in some EU countries can lead to compulsory insurance in the local GKV and subsequently also in Germany. This also requires concrete design advice, as a tailor-made suit in individual cases.
And this is certainly associated with consultancy costs, which can be considerable – but they are negligible in comparison to the savings in contributions to the KV. Any failure to obtain advice from the SHI system should be carefully documented, and advice should be sought in advance to ensure that the prospects of later reimbursement by way of recourse are secured.
For example, anyone who is self-employed and wishes to remain so will not return to the SHI system in Germany even if he or she is 55 years old, even if he or she takes up paid employment on the side.
He can nevertheless become liable to social insurance in a foreign SHI system by taking up a part-time dependent employment there for some time or by transferring his residence.
Subsequently, he will be admitted to the German statutory health insurance system – even at retirement age. Knowing how and where, the self-employed person, the high-income employee and the over 55 year old will also become liable to statutory health insurance simply by taking on a short-term second job, even without changing their place of residence or reducing their main occupation, and this quite legally according to the existing legal regulations in Germany or in other EU countries.
by Dr. Johannes Fiala and Dipl.-Math. Peter A. Schramm
by courtesy of
www.tabakzeitung.de (Issue 43 of 23.10.2015)
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About the author
Dr. Johannes FialaPhD, MBA, MM
Dr. Johannes Fiala has been working for more than 25 years as a lawyer and attorney with his own law firm in Munich. He is intensively involved in real estate, financial law, tax and insurance law. The numerous stages of his professional career enable him to provide his clients with comprehensive advice and to act as a lawyer in the event of disputes.
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