Please accept the marketing cookies to schedule a meeting.
Accept Now
bKV FAQ
How much does supplemental health insurance cost per employee?

How much does supplemental health insurance cost per employee?

The premium for a supplementary health insurance plan depends on three factors: the selected plan, the benefit budget, and the demographics of the workforce. It is not possible to make a blanket statement such as “supplementary health insurance costs X euros,” but there are clear premium ranges within which most plans on the market fall.

Overview of Premium Categories

  • Basic plans (€10–25/month): Annual budget of €300–500, with a focus on preventive dental care and vision aids. These plans remain below the non-taxable benefit threshold and are therefore tax-free.
  • Mid-range plans (25–50 euros/month): Annual budget of 500–900 euros, including alternative practitioners, osteopathy, and expanded preventive care. Also eligible for tax-free coverage.
  • Premium plans (50–100 euros/month): Annual budget of 900–1,500 euros, often including hospital coverage options (single or double room, treatment by the chief physician) or international coverage. Require lump-sum taxation.

What specifically affects the premium

Demographics play a smaller role than is often assumed—group plans spread risk across the entire workforce. Factors that have a greater impact include: minimum number of participants (larger pools lower premiums), mandatory versus voluntary coverage (mandatory plans are cheaper), and the scope of benefits.

Economic Classification

A 50-euro plan costs the employer 600 euros gross per employee per year; after tax deductibility as a business expense, the net cost is approximately 400 euros. A pay raise with a comparable net effect for the employee costs the employer significantly more, depending on the specific circumstances. This makes the bKV up to about twice as efficient as a traditional pay raise. The exact ratio depends on the tax bracket, social security contributions, and the plan’s rate.

What isn't listed in the premium schedule

The premiums listed are list prices. When negotiating with insurers, discounts of between 5 and 20 percent are realistic depending on the circumstances—especially for larger workforces, multi-year contracts, or clearly defined mandatory rates. A professional rate analysis is therefore almost always worthwhile.

Table of Contents

Heading 2
Heading 3
Heading 4
Heading 5
Heading 6

More Questions About Supplementary Health Insurance

What is a company health insurance plan (bKV)?
Employer-sponsored health insurance (bKV) is a supplementary insurance plan funded by the employer for employees covered by statutory health insurance. It covers services that statutory health insurance (GKV) does not reimburse, or only reimburses to a limited extent—such as dental prosthetics, eyeglasses, alternative practitioners, or advanced preventive care. Up to 50 euros per month, it is exempt from taxes and social security contributions.
See the full answer
Is the supplementary health insurance tax-free?
Up to the monthly non-cash benefit exemption limit of 50 euros per employee, the supplementary health insurance (bKV) is exempt from income tax and social security contributions (Section 8(2), Sentence 11 of the Income Tax Act (EStG)). For higher premiums, the employer may pay a flat-rate income tax of 30 percent (Section 37b of the Income Tax Act (EStG)). However, the monetary benefit remains subject to social security contributions. Full net neutrality for employees is achieved only if the employer also covers the social security contributions.
See the full answer
Is supplemental health insurance worth it for small businesses?
Yes. Supplementary health insurance (bKV) is available for companies with as few as three employees and is an effective recruiting tool, especially for small businesses. Its tax efficiency (up to about twice as effective as a salary increase), minimal administrative burden, and proven ability to retain employees also make it attractive for SMEs.
See the full answer