Germany's long-term care insurance faces significant financial challenges, with concerns about potential insolvency looming. Despite a recent increase in contributions, the rising number of individuals requiring care and the high costs associated with limiting out-of-pocket expenses for nursing home residents have strained resources. The projected deficit could exceed 4 billion euros by 2024, highlighting the urgency for corrective measures.
Federal Health Minister Karl Lauterbach has announced plans for a comprehensive reform aimed at stabilizing the system. He reassures that insolvency is not imminent, despite reports suggesting otherwise. The reform is expected to address financing structures, family caregiver support, and include elements of digitalization.
There are several proposed solutions to avert the crisis. These include increasing contributions by 0.25 to 0.3 percentage points, utilizing tax funds to cover pandemic-related expenses, and considering grants for pension contributions made by family caregivers. Additionally, a reform of medical treatment care is on the table, although any reduction in social benefits is unlikely during an election year.
Critics, including members of the Union faction and social associations, stress the need for swift action, urging for more inclusive insurance models and broader contribution bases that could involve civil servants and self-employed individuals.
As the government works on a "notoperation" to secure the system's financial health, the focus remains on ensuring that care services continue to meet the needs of Germany's aging population. Lauterbach's reform, expected soon, aims to provide both short-term relief and a sustainable path forward.
