What is betriebliche Krankenversicherung?
Betriebliche Krankenversicherung (bKV) is employer-sponsored supplementary health insurance. The employer finances health insurance cover for employees — either through a flexible health budget or through specific benefit modules.
This is not full private health insurance. Employees remain in their existing statutory (GKV) or private (PKV) health system. The bKV adds supplementary coverage on top — paid by the employer, used by the employee.
It is also not the same as individual supplementary insurance, which a person purchases and finances themselves. In a bKV, the employer is the policyholder, the employees are the insured persons, and the group structure means no individual health assessments are required.
Pre-existing and already-started treatments: In budget-based tariffs (BudgetFlex), these are always covered. In classic component tariffs (Bausteintarife), this applies from 50 insured employees onward.
Why employers choose bKV
Employer-sponsored health insurance has grown significantly in Germany over the past decade. The key drivers are structural, not promotional:
Employee retention
In a competitive labor market, health benefits are tangible and personal. Unlike generic perks, health insurance cover is something employees and their families directly experience.
Healthcare access
bKV cover gives employees access to benefits their statutory insurance does not include — professional dental cleanings, preventive screenings, hospital comfort, glasses, and alternative medicine.
Low administrative effort
Modern bKV solutions use digital platforms for enrollment, administration, and claims. The employer selects the product and budget level — the operational complexity stays manageable.
Potential tax efficiency
Under certain structuring conditions, employer-financed bKV premiums can qualify as non-cash benefits (Sachbezüge) within the statutory monthly threshold, making them tax-efficient for both employer and employee. Professional tax advice is essential.
How employer health benefits are structured
Two distinct approaches to employer-sponsored health insurance are available. Both are designed for group enrollment without individual health assessments:
BudgetFlex
An annual health budget that employees use flexibly. The employer sets the budget level (€300–€1,500/year). Within that budget, employees choose from a defined catalog of health services — dental, prevention, glasses, alternative medicine, and more. Available from 10 employees.
Classic Components
The employer selects specific benefit modules — prevention, dental, hospital, or alternative medicine. Employees receive the chosen cover. This model suits employers who want clearly defined benefits rather than a flexible budget.
Who is this for?
For employers and HR
- Choose a product model (budget or components)
- Set the benefit level for your team
- Understand tax structuring requirements
- Manage enrollment digitally
- Use bKV as a strategic retention tool
For employees
- Your employer pays — you benefit
- No health assessment required
- Access dental, prevention, glasses, hospital add-ons
- Family extension may be available at your own cost, if your employer's framework contract includes it
- Coverage can continue if you leave the company — at your own cost
A note on tax treatment
Under current German tax law, employer-financed supplementary health insurance can be treated as a non-cash benefit (Sachbezug) within a monthly threshold. When properly structured, this means:
- No income tax for the employee on the benefit
- No social security contributions triggered
- Employer-side tax treatment (e.g. as a business expense) depends on the specific setup and should be confirmed with payroll or tax advisors
Whether bKV premiums qualify as tax-free in-kind benefits depends on proper employment-contract structuring and compliance with the statutory monthly Sachbezug threshold. Professional tax advice is essential. The information on this page does not constitute tax advice.
Frequently asked questions
Considering bKV for your company?
We help employers and HR teams evaluate the right product model, budget level, and structuring approach — based on your company's actual needs.
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