German private health insurance goes up in 2027: what it covers in Mexico

November 12, 2026. If you have German private health insurance (PKV) and live in Mexico or spend the winter here, check your mail. According to the PKV-Verband, the German association of private health insurers, based on what is known so far premiums will have to rise on January 1, 2027 for about 53% of privately insured people. For them, the expected average increase is 13.4%: 11.4% for those entitled to the state allowance for civil servants (Beihilfe) and 15.3% for everyone else.

The letter has to arrive on time. Section 203 of the German Insurance Contract Act (Versicherungsvertragsgesetz, VVG) says the new premium takes effect at the start of the second month after the policyholder receives the notice with its reasons. That is why, as Bürger & Geld explains, for an adjustment on January 1 the letter must arrive by November at the latest.

Why it is going up

The PKV-Verband points to the cost of care. In 2025, private insurers paid almost 7.5% more than the year before for general hospital services, about 8% more for medicines and 6% more for outpatient treatment by doctors. According to the association, the law sets a 10% deviation threshold for recalculating premiums, and some tariffs agree on a lower one. An independent trustee reviews the calculation and, under Section 203 of the VVG, has to approve the adjustment.

The differences between companies are large. For comprehensive coverage, with data as of October 28, 2026 gathered mostly by the consultancy hc consulting, Bürger & Geld reports average adjustments on January 1, 2027 of 2.19% at R+V and 11.72% at AXA, among other companies. It warns that the figures include premium reductions and are only partly comparable: what counts is your own letter.

What the model conditions say if you live outside Europe

The MB/KK 2009 model conditions that the PKV-Verband publishes for medical expense insurance, in their June 2024 version, state the following:

• Coverage is for Europe. The insurance covers treatment in Europe and can be extended to countries outside Europe only by agreement (Section 1, paragraph 4).
• Outside Europe, the first month. Without a special agreement, you are covered during the first month of a temporary stay outside Europe. If necessary treatment forces you to stay longer, coverage continues as long as you cannot travel back without risk to your health, but for no more than two additional months.
• If you move, the contract ends. If you move your habitual residence to a country outside the European Union and the European Economic Area, such as Mexico, the contract ends for that person unless it is agreed to continue it. For that, the insurer may charge an appropriate surcharge (Section 15, paragraph 3).
• If it is temporary, it can be put on hold. If the move is only temporary, you can ask to convert the contract into a standby policy (Anwartschaftsversicherung).

These are model conditions: your insurer may have agreed to something different in your conditions or your tariff, for example worldwide coverage. Check your documents before assuming that you are covered or that you are not. For German public insurance, see our article on Europeans in Mexico.

If you decide to switch

Section 205 of the VVG gives you two months from receiving the letter to cancel, effective on the date the increase would take effect. If your policy is the one that meets the German obligation to be insured (Section 193 of the VVG), you can only cancel it if you take out a new policy with another insurer that meets that obligation. Ask your insurer what applies in your case.

What to do before January

1. Read the whole letter. It must include the new premium and the reasons for the adjustment.
2. Ask in writing where you are covered. Ask your insurer to confirm whether your tariff covers you outside Europe and what happens to your contract if your habitual residence is in Mexico.
3. If your stay is temporary, ask about the Anwartschaft, the option the model conditions provide for that case.
4. Before cancelling, ask what you lose. Ask your insurer to explain what you give up by leaving and what happens if you move back to Germany, and take out the new policy before you cancel the old one.

Insurance made for where you live

A Mexican major medical insurance policy is designed for people who live here: it covers you in Mexico and usually offers choices of sum insured, deductible and coinsurance. The hospital network depends on the insurer and the plan, and you should check pre-existing conditions, exclusions and renewal increases. If you travel to Europe often, an international medical insurance policy can also cover you outside Mexico, depending on the zone you choose.

According to Expansión, Fitch Ratings considers that the Mexican insurance industry's performance remained favorable and resilient in the second quarter of 2026, although it warns of pressure on some insurers.

Compare your health insurance in Mexico with 1SEGUROS

At 1SEGUROS, in Mérida and with more than 30 years of experience, we compare national and international medical insurance from several insurers and review coverage, deductibles and exclusions with you before you sign, so you can calmly decide what to do with your German policy. We help you in Spanish or English. Message us on WhatsApp at +52 999 316 7145.