Germany's €22 Billion Care Crisis Sparks Controversial Austerity Plan

Germany’s long-term care insurance system is facing a financial crisis, with a projected deficit of over €22 billion. In response, Health Minister Nina Warken is set to unveil an austerity package by mid-May that includes significant cuts to nursing care subsidies. Critics warn the changes could push more residents into poverty and worsen the existing care shortage. The proposed reforms would delay planned increases in subsidies and cap maximum coverage at 70% over four and a half years. This reduction would force care home residents to pay an extra €161 per month, according to Heinz Rothgang’s calculations. Over time, the total additional cost per resident could reach nearly €20,000.

Warken’s plan also suggests halving pension entitlements for family caregivers, a move that Andreas Storm, head of DAK, has strongly opposed. He argues that such measures would deepen financial strain on vulnerable groups and further destabilise the care sector. Currently, residents already contribute an average of €3,200 per month out of pocket. Storm has urged Warken to reconsider, warning that the reforms risk worsening both the care crisis and poverty levels among the elderly. The Health Ministry, however, maintains that without these cuts, the system’s financial gap will continue to grow.

The proposed austerity measures aim to address a €22 billion deficit in Germany’s care insurance system. If implemented, residents would face higher monthly costs, while family caregivers could see their pension benefits slashed. The final decision rests with Warken, who is expected to present the full package in mid-May.