The looming insolvency of a major long-term care fund, which supports approximately half a million insured individuals, has raised significant alarm within the health insurance sector. As the umbrella organization of company health insurance funds warns of a potential downward spiral, the urgency for reform intensifies. The head of the National Association of Statutory Health Insurance Funds has highlighted the necessity to control rising expenditures, especially as health insurance funds have reported a staggering deficit of 6.2 billion euros for 2024.
The recent increase in contribution rates for long-term care insurance by 0.2 percentage points, alongside a notable rise in co-payment costs for nursing home stays, underlines the financial strain on care recipients and their families. With costs surging and average co-payments escalating from 2,687 to 2,984 euros, the situation is becoming increasingly untenable.
Despite the implementation of reforms under Health Minister Karl Lauterbach, the financial challenges persist. He has criticized the previous government's lack of modernization efforts, attributing the ongoing deficits not solely to inflation but also to rising healthcare service costs, which have increased by over eight percent. Lauterbach advocates for a comprehensive overhaul of the health system, including more sustainable funding models that rely on tax revenues rather than contributions alone. The pressing need for reform has never been clearer, as the financial stability of long-term care insurance hangs in the balance.
