How the component model works

Instead of giving employees a flexible budget to spend across categories, the classic component model works differently: the employer selects specific benefit modules for the entire team. Each module covers a defined health area — prevention, dental, hospital, or income protection.

The employer decides which modules to offer. All employees receive the same cover. Premiums are flat per employee — the same rate regardless of age or health status. No individual health assessment is required.

Pre-existing and already-started treatments: Inclusion is possible from 50 insured employees onward. For smaller groups (10–49 employees), special conditions apply for certain tariffs.

This model suits employers who want visible, clearly defined benefits — for example, "we cover dental cleaning and prevention for everyone" — rather than a flexible budget where each employee's actual benefit varies.

Available benefit modules

The following classic bKV components are available. Employers can select individual modules or combine them:

Prevention (Vorsorge)

Extended health screenings and preventive diagnostics beyond GKV standard. Includes check-ups and cancer screening (up to €1,000 within 2 years) as well as vaccinations (up to €200 within 2 years).

Dental (Zahn)

Doubles the GKV fixed subsidy for dental prosthetics — crowns, bridges, and implant superstructures. Available as a prosthetics-focused variant or as an extended variant that also covers professional dental cleaning (up to €75/year).

Hospital (Krankenhaus)

Two-bed room, consultant treatment, and free choice of hospital. Available in different variants: comprehensive hospital cover, accident-only cover, or cover limited to specific severe illnesses — the employer selects the appropriate scope.

Sickness Daily Cash (Krankentagegeld)

An income replacement benefit from the 43rd day of work incapacity or the end of employer salary continuation. Paid regardless of whether the employee is hospitalized — including during rehabilitation or recovery at home. Unlimited duration as long as the inability to work persists.

Budget model vs classic component model

Both models are employer-financed, group-enrolled, and require no individual health assessment. The key difference is in how the benefit is structured:

Dimension	BudgetFlex	Classic Components
Benefit logic	Annual budget, employee chooses	Fixed modules, employer chooses
Employee flexibility	High — within covered catalog	Lower — defined per module
Employer control	Sets budget level	Selects specific areas
Health assessment	None	None
Premium model	Flat per employee	Flat per employee per module
Combinable	✓ With classic modules	✓ With BudgetFlex

Both models can be combined. An employer might offer BudgetFlex as the core benefit and add a specific classic component (e.g. hospital) for additional depth. A consultation clarifies which structure fits your company best.

Frequently asked questions

When does a classic component model make more sense than a budget model?

When the employer wants all employees to receive a clearly defined benefit in a specific area. For example, "all employees get dental cleaning coverage" or "all employees get hospital comfort." This makes the employer's offer concrete and easy to communicate — whereas a budget model offers flexibility but may feel less tangible to employees unfamiliar with supplementary insurance.

Can employers combine multiple modules?

Yes. Modules can be combined freely — for example, prevention plus dental, or dental plus hospital daily cash. The employer can also combine classic modules with BudgetFlex as the base, adding targeted components on top of the flexible budget.

Do all employees receive the same benefits?

In the classic component model, yes — all enrolled employees receive the same modules the employer has selected. There is no individual customization. This makes the benefit equitable and simple to administer.

Is this only suitable for large companies?

No. Employer health insurance is available from 10 employees onward. The digital administration platform keeps the effort manageable for smaller companies without dedicated HR teams. Both the BudgetFlex and classic component models are designed to scale from small firms to large organizations.

How is the tax treatment handled?

As with BudgetFlex, the tax treatment of classic component premiums depends on proper structuring — specifically, whether the arrangement qualifies as a non-cash benefit (Sachbezug) within the statutory monthly threshold. If conditions are met, the benefit can be tax-free for the employee. Professional payroll or tax advice is recommended to ensure correct treatment.

Explore further

BudgetFlex — flexible health budget →

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