Health insurance in B-W, am I being ripped off?

I'm working in Baden-Württemberg as a software developer since August. I have health insurance at AOK. I just received a letter from them, informing me that my monthly insurance fee is going to be 1007.48 Euros! This does sound extremely excessive to me. Even private insurance companies charge around half of this for their most premium packages.

Of this amount, 807.98 is Krankenversicherung, the actual insurance, and 199.50 Pflegeversicherung, which is hospital treatment insurance.

The letter explains that my salary is over the statutory insurance limit. It also says that the amount will be deducted from by total salary (the Brutto), and that I'm going to receive a subsidy from my employer towards the contributions. I don't really understand what's that supposed to mean. Am I getting a partial refund or what?

Either way, do you guys also think I'm being ripped off, or is this normal here?

You are in the public insurance scheme and there is no scope for being ripped off in that - especially not by AOK, the biggest public insurer.

Private health insurance can be cheaper for young and healthy people, but come with other disadvantages (e.g. you cannot insure family members for free there and it's not allowed to change back to public once you're old and the premiums rise).

The amount you mention is the normal rate, which every German resident earning above the maximum threshold ("Beitragsbemessungsgrenze") has to pay. Almost half of that is paid by your employer, the other (a bit more than) half is taken from your salary.

In the public scheme, everyone pays a certain percentage (curently around 16%) of one's income. From that, a reasonable level of health care is paid for all, regardless of what they contribute.

"Pflegeversicherung" is not for hospital treatment, but old age or disability care.

Oh, I see. So only half of it will be deduced from my salary then? That's what "subsidy" is supposed to mean?

Askthe person who wrote it, what they mean by "subsidy".

By law, the employer has to bear slightly less than half, and they are not allowed to give more (or less).

That does sound like quite a substantial amount for health insurance! The explanation you received seems to indicate that your salary exceeds the statutory insurance limit, leading to higher contributions. The subsidy from your employer is likely a percentage of the contribution to help offset the cost for you.

If you're curious about exploring alternatives or seeking advice on optimizing your insurance costs, you might want to check out Cleveroad's Fintech solutions, particularly their [link moderated]. They specialize in innovative solutions and might have insights or tools to help you navigate the complexities of insurance costs.

It's always a good idea to reach out to your HR department or directly to AOK to get a clear understanding of how the subsidy works and whether there are any options for optimizing your insurance plan. Best of luck in finding a solution that works best for you!