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Freelance AND employed..public health insurance implications

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..not sure if there´s already a thread on this but this topic keeps cropping up...and it confuses the hell out of me, too!


Basically, some people are simply employees and either publicly insured or privately insured

Some people are freelancers/self-employed and are either publicly or privately health insured

:lol:Some people are self-employed/freelancers and have no health insurance!!!


But there are some people who are both employees AND self-employed/freelancers and the issue of where to be health insured legally can be problematic.


The so-called Fünfte Buch des Sozialgesetzbuches regulates who has to be publicly health insured eg employees under a certain income level.

But sometimes people get stuck and don´t know how they should be insured.


So what´s the problem then?


Essentially, people who are overwhelmingly self-employed/freelance but also are employees " a bit " can be privately insured if they wish. The employer in such cases pays their part and deducts the employee´s part for pension and unemployment insurance but no payments are deducted or paid for health insurance.


But the " fighting " starts when deciding what is the main focus of income and work. Normally, a person is classified as freelance/self-employed if they earn most of their money and spend most of their time on the self-employed/freelance work. The other way around if the person spends most of their time and earns most of their money  as an employee.


If a self-employed person is privately health insured but then takes an employee position where most of the time and money is earnt , then that person must leave private insurance and go to public insurance ( unless they have a high income and are no longer " versicherungspflichtig " ).


IF the overwhelmingly self-employed person is a voluntary member of public health insurance,then the contributions to public insurance are a combination of the employee part AND a percentage of income from self-employed/freelance work.


Rule of thumb: whoever works fewer than 18 hours a week on a freelance/self-employed basis and is also an employee is USUALLY compelled to have public health insurance but it can lead to individual legal arguments ie case by case.


Another rule of thumb: whoever works fewer than 10 hours a week on a self-employed/freelance basis but also employees a person/people may be considered self-employed enough to stay in private insurance (if already there ). 


A grey area: if the income generated from self-employed/freelance work is less than that earned in the dependent, employee position BUT if the person can prove their invested work time is greater than that as a an employee, then it is often NOT compulsory to be publicly health insured.



:rolleyes:So, to sum up: easy, innit? 


Ok, if you spot my " deliberate " mistakes, please feel free to comment! I wanted to get this over with before the footie starts this evening!!!!

I am a professional independent insurance broker and authorised advertiser. Contact me.

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