Germany is seeing a growing interest in employer-sponsored health benefits, particularly those addressing long-term care costs. A recent survey indicates that a significant majority of German employees – 76.3 percent – would welcome the provision of a company-sponsored long-term care insurance (bPV) to cover out-of-pocket expenses associated with care needs. This desire for financial protection in the face of rising care costs is notable, with 64.2 percent of employees valuing such a benefit even more highly than perks like company-provided mobile phones or public transportation tickets.
The trend reflects broader demographic shifts and increasing financial burdens on individuals requiring long-term care. Thomas Brahm, CEO of the PKV-Verband (Private Health Insurance Association), emphasized the growing relevance of employer-provided insurance solutions. “Especially with a view to the rising co-payments in stationary care, capital-funded company long-term care insurance can efficiently and sustainably secure the financial risk of this care gap at favorable premiums,” Brahm stated. He further called for increased tax incentives to encourage the adoption of these plans.
Beyond long-term care, employer-sponsored health insurance (bKV) is experiencing substantial growth in Germany. As of 2025, approximately 60,000 companies now offer a fully employer-funded bKV to their employees – a 15.6 percent increase (8,200 companies) compared to the previous year. This expansion translates to 2.82 million employees benefiting from such coverage, including around 450,000 covered by bPV specifically, representing a 14.8 percent increase (364,300 additional insured individuals).
The appeal of bKV extends beyond simply providing health coverage; it’s becoming a key tool for attracting and retaining talent, particularly among younger workers. Surveys reveal that around 68 percent of employees would view the offering of a bKV as a positive benefit from their employer. Notably, 55 percent of employees consider a bKV more valuable than other common perks like job tickets or mobile phones.
Brahm highlights the strategic advantage bKV offers companies in a competitive labor market. “In times of an increasingly acute shortage of skilled workers, bKV is a strategic advantage for companies,” he explained. “It strengthens employee loyalty, increases attractiveness as an employer and simultaneously creates a real health benefit.”
So, how does bKV function? It’s designed as a supplement to Germany’s statutory health insurance system (Gesetzliche Krankenversicherung), covering healthcare services not fully or at all covered by public insurance. This can include high-quality dental work, premium hospital accommodations, and, crucially, supplemental insurance for travel abroad, daily sickness benefits, and long-term care costs.
The structure of bKV offers advantages for employees as well. Because coverage is extended to entire workforces, insurers often waive health checks that might otherwise be required for individual policies. Coverage can frequently be extended to family members of employees.
The growth of bKV and bPV reflects a broader trend toward employers taking a more active role in employee well-being, driven by both a desire to attract and retain talent and a recognition of the increasing financial pressures facing individuals in accessing healthcare and long-term care services. The German experience provides a case study for other countries considering similar employer-sponsored benefit models.
