Germany's long-term care crisis sparks urgent reform and higher costs for top earners
Germany's long-term care crisis sparks urgent reform and higher costs for top earners
Germany's long-term care crisis sparks urgent reform and higher costs for top earners
Germany’s long-term care insurance system faces a growing financial crisis. Health Minister Nina Warken (CDU) has announced plans to raise contributions and shift more costs onto higher earners. The move comes as the scheme’s deficit is set to exceed €22 billion within two years. The social long-term care insurance scheme has struggled for years, with spending consistently outpacing revenue. Warken criticised previous governments for expanding benefits, calling the system’s state 'catastrophic'. She has ruled out reducing the current five-tier dependency levels, which were increased from three.
By mid-May, Warken will propose reforms and cost-cutting measures to stabilise funding. One key change involves raising the income threshold for contributions, currently set at €5,812 gross monthly salary. The aim is to prevent further hikes in care contributions while addressing the financial shortfall.
The reforms will target higher earners to ease the financial strain on the system. Warken’s proposals seek to balance rising costs without reducing existing care benefits. The final decisions will shape long-term care funding for years to come.