Legal requirements

§ 193 VVG (German insurance contract law) 

No changes to the disadvantage of the insured person / policyholder according to Section 208 VVG. The health insurer cannot terminate after a claim the insurance contract and also cannot change the maximum annual coverage contributions while the contract period. The Insurer also cannot change the place of law the contract is based on. 

§ 257 SGB (German Social Security Law)  

According to Section 257 (2a) of the Fifth German Social Security Law, an employer subsidy is only paid if the insurance company fulfills the requirements to operate life insurance-like health insurance. This means that the health insurance calculation and financial handling is securing parts of the profits, for may later happen unexpected losses. BaFin (German insurance supervisory board) issues a certificate at the request of the insurance company. So far, it has not issued such a certificate to any EEA (European Economic Area) insurer or service provider because they do not meet the requirements mentioned.  

If the insurance contract with the EEA insurer or service provider does not meet the requirements of the VVG (German Insurance Contract Law), the insured person is punished twice. The insured then not only suffers from the possibly limited obligation of the EEA service provider, but also (temporarily) fails to meet his duty for mandatory insurance requirements. If the insured subsequently concludes a contract that meets the compulsory insurance under Section 193 (3) VVG, he must also pay a premium surcharge because of the late conclusion – for example if he changes from an EEA service provider to a German insurer. The changing from an EEA insurer or service provider towards the German statutory or private full comprehensive health insurance, you would need to pay backwards the new insurance fee as a penalty since you have entered Germany based on that given law.

§ 10 Abs. 1 Nr. 3 EStG (German Income Tax law) 

This means that health- and care insurance fees paid by you can be considered as tax-reducing expenses. So you can deduct your insurance fees from your German income tax. 

§ 195 VVG (Retirement Provision Law)

Fullfillment of § 195 VVG (Retirement Provision Law) means that it can fulfill all requirments of a full comprehensive insurance including retirement provisions to reduce the contribution in old age.