Health insurance during unemployment in Germany

Losing your job in Germany doesn’t mean losing your health insurance. In fact, staying covered is legally required.

But how your coverage continues, who pays for it, and what steps you need to take depend on your employment status and insurance type.

In this guide, you’ll learn:

• What happens to your insurance if you’re unemployed in Germany
• How public vs. private coverage works during job loss
• Step-by-step instructions for staying insured after losing your job
• Who pays your premiums, and how subsidies work
• What to do if you're not eligible for benefits
• Your options after you find a new job

By the end, you’ll know exactly how to maintain your coverage, avoid costs, and protect your health during a period of unemployment.

What happens to your health insurance when you become unemployed in Germany?

You stay insured, but how it works depends on whether you're in public or private health insurance:

• Public insurance (GKV) continues automatically if you register for unemployment benefits.
• Private insurance (PKV) requires manual continuation and may be expensive if not subsidized.

However, no matter what, you must always maintain insurance. Gaps in coverage lead to back payments and possible debt.

Let’s look at the details:

If you're publicly insured:

Coverage continues automatically if you register with the job agency and qualify for unemployment benefits (ALG I or Bürgergeld/ALG II).

In this case, the job agency pays your contributions. You don’t need to reapply or change providers.

If you don’t qualify for benefits, you can apply for voluntary continued coverage (freiwillige Versicherung), but you’ll pay based on your estimated income.

If you're privately insured:

You must manually continue your contract. Contact your health insurance for details.

If you get ALG I, the job agency may subsidize your premium (up to the public insurance level); you pay the rest. If you don’t qualify for ALG I, you will be required to pay the full premium yourself.

What to do when you lose your job: Step-by-step

Losing your job in Germany means taking quick action to protect your health insurance and avoid costly gaps.

Here's what to do, when to do it, and what documents you’ll need:

Step 1: Notify the employment office

Within 3 days of receiving your termination letter, you must notify the employment office. Otherwise, you risk losing your rights to unemployment benefits and delaying insurance coverage,

It’s easy too, you just need to register as “looking for work” (arbeitssuchend) via the Agentur für Arbeit’s website or by phone.

Step 2: Register as unemployed on your first day without work

On your first official day of unemployment, you must register as unemployed (arbeitslos) in person or online.

This initiates your unemployment benefits and continued insurance coverage.

Step 3: Notify your health insurance provider

Whether you’re in public or private insurance, you must notify your insurer about any changes to your employment status.

• Public insurance: Your insurer is usually informed automatically by the job agency once you’re registered. Still, confirm the details directly with them.
• Private insurance: You must proactively notify your insurer and confirm how you plan to continue your coverage (they’ll give you a few options, just reach out to them).

How to stay insured if you're not eligible for unemployment benefits

If you're between jobs, ineligible for benefits, or voluntarily unemployed, you still need continuous health coverage.

Here are your options to avoid insurance gaps:

Family insurance (Familienversicherung)

It’s available through statutory insurance for spouses or children. It’s usually free of charge if your income is under ~€505/month (in 2025), but only applies under age limits and with no other insurance obligations.

Voluntary insurance (freiwillige Weiterversicherung)

Public insurance lets you stay insured voluntarily after employment ends. Premiums are based on your estimated income with a minimum rate of ~€200–€220/month.

You must apply for this type of insurance; it's not automatic.

Expat health insurance

Also known as short-term health insurance, expat insurance is one of the most affordable options for health insurance during unemployment.

Who pays for your health insurance while unemployed?

Who pays depends on your benefit status and the type of insurance you have.

Let’s take a closer look:

If you receive ALG I (Unemployment Benefit I):

If you’re publicly insured (GKV):

• The employment agency pays your full premium—both employee and employer shares.

• You keep your current insurer and full coverage.

If you’re privately insured (PKV):

• You get a monthly subsidy (~€200–€230), equivalent to the public insurance cost.
• If your premium is higher, you pay the difference.

If you receive Bürgergeld (formerly ALG II):

If you’re publicly insured (GKV):

• The Jobcenter pays your premium at a flat rate.
• You're automatically covered.

If you’re privately insured (PKV):

• You may be forced to stay private
• The Jobcenter may not cover the full cost.
• You may need to downgrade to the basic tariff (Basistarif) or cover the additional costs yourself.

If you’re not receiving benefits:

You’ll need to pay the cost of insurance by yourself. This can apply if you're:

• Voluntarily unemployed
• An expat not yet eligible for benefits
• Between freelance contracts
• Taking a career break

What to do with insurance after unemployment

Once your situation changes (such as a new job or freelancing), you must update your insurance immediately to stay covered and compliant.

Here’s what you need to know.

If you’re starting a new job

Your insurance will reactivate automatically.

If you’re earning less than €73,800, you’ll automatically be enrolled in public health insurance.

If you earn more, you can choose public or private insurance.

If you choose private health insurance, you’ll need to sign up yourself, and inform your employer.

Suggested: Private insurance vs. public insurance in Germany.

If you’re starting as a freelancer

You can choose between 3 options:

1. Public health insurance: usually the most expensive option, but provides good coverage for pre-existing conditions.
2. Private health insurance: usually the “best” option when in you’re young and in good health. Provides a good balance of coverage and cost.
3. Expat health insurance: usually the most affordable option, but excludes any pre-existing conditions.

Suggested: Health insurance for freelancers in Germany.

If you’re moving abroad

You’ll have to manually cancel your health insurance. This typically means:

1. Deregistering your German address (Abmeldung).
2. Show proof of foreign insurance.
3. Completed insurance cancellation forms (ask your insurance for where to find those).

Without formal cancellation, premiums will continue to pile up, even if you’ve left the country.

Conclusion

Losing your job doesn’t mean losing your healthcare safety net in Germany, but it does mean taking action quickly to maintain continuity.

Whether you're covered by public or private insurance, the steps you take in the first few days can make a big difference in avoiding surprise costs or coverage gaps.

And if you're not eligible for benefits, knowing your options (from voluntary coverage to expat insurance) helps you stay protected while you regroup.