The long-term care insurance system in Germany faces a critical financial challenge, marked by a significant deficit of 1.54 billion euros in 2022. Despite recent increases in premiums, a further shortfall of 0.5 billion euros is anticipated for 2023. Financial strain has already led one care fund to seek assistance from the Federal Office for Social Security to avoid insolvency.
The equalization fund, designed to support these care funds, is rapidly depleting and might reduce to just 300 million euros by April's end. Doris Pfeiffer, head of the National Association of Statutory Health Insurance Funds, warns that the system is in dire straits, while BAS President Frank Plate anticipates further financial difficulties for more care funds.
Currently, the Union and SPD parties are in coalition talks, with their preliminary agreement only vaguely promising a major care reform. However, the urgency of the situation demands immediate action from the incoming government to stabilize the system.
The increase in premiums, with rates at 3.6% for those with children and 4.2% for those without, has not resolved the financial woes. The reserve of the care funds has dwindled to 1 billion euros, indicating a precarious financial future. As discussions continue, the potential next Chancellor, Merz, proposes introducing a private care insurance option.
With the risk of more funds requiring bailouts, there is a pressing need for comprehensive reform. The coalition's working group, led by Laumann and Pähle, will play a vital role in navigating these reforms to ensure the sustainability of the long-term care insurance system.
