Financial Strain on Long-Term Care Insurance

The long-term care insurance system is facing a significant financial shortfall, projected to reach billions. As the number of individuals requiring care rises, along with escalating wages and associated costs, the financial pressures have intensified.

Experts predict potential contribution increases of up to 1% to address this gap. The government is contemplating reforms aimed at alleviating the financial burden, including the assumption of pandemic-related costs and pension contributions for family caregivers.

However, immediate measures are urgently needed to prevent the proposed hikes in contributions. The successful implementation of these reforms hinges on crucial political decisions and the ongoing tight budget situation.

Without timely intervention, the statutory long-term care insurance could face insolvency as early as February. Analysts suggest that a mere increase of 0.2 percentage points in contributions will not suffice, with estimates indicating that a rise of 0.25 to 0.3 percentage points is necessary to maintain stability.

As the situation evolves, stakeholders emphasize the importance of clear communication regarding funding strategies to ensure the viability of care services in Germany.