"Die Krankenversicherung ist gratis."
Translation:The health insurance is free of charge.
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To clarify: Kostenlos means it is expected to be free; no price means that no price has been attached to it at any time. Gratis means that it ordinarily costs money, but is free right now, like in a special deal or a gift; free of charge meaning the ordinary charge/cost has been suspended.
My understanding is that gratis is used in situations where you get something "free" with something else. Like a "buy one get one free" offer or "your hotel room comes with free wi-fi". For other examples see: http://context.reverso.net/translation/german-english/gratis.