Long-term care insurance is in flames

"In der Pflegeversicherung brennt es lichterloh" (long-term care insurance is in flames), an article by Procontra Online, addresses the critical financial situation of statutory long-term care insurance in Germany.

What is it about?

Statutory long-term care insurance recorded a deficit of 1,55 billion euros last year. Despite a contribution increase of 0,2 percentage points at the turn of the year, which brought in additional revenue of 3,7 billion euros, the financial situation remains tense. Expenditure rose by 11 percent (6 billion euros) and is expected to exceed 70 billion euros for the first time. The number of people in need of care rose from 1,1 million in 1995 to 5,7 million at the end of 2023.

What has happened?

The increased expenditure results from higher benefit amounts, political reforms to cap the co-payments and the growing number of people in need of care. Some funds could already need liquidity assistance this year in order to remain solvent.

What are the consequences?

Without further measures, long-term care insurance faces considerable funding problems in the coming years. The contribution increases so far might not be enough to cover the rising expenditure, which could jeopardise the care of those in need.

What are politicians doing?

Various political parties are proposing different solutions:

SPD: introduction of a joint, solidarity-funded care system by merging statutory and private long-term care insurance, and capping co-payments for inpatient care at 1.000 euros per month.

Union (CDU/CSU): development of a comprehensive concept for stable care provision, although specific measures have not yet been set out in detail. In addition, social associations such as the SoVD are calling for the introduction of a solidarity-based full insurance into which all citizens pay, in order to secure the funding of care in the long term.

There is an urgent need for politicians to act and develop sustainable solutions for the financial stability of long-term care insurance.

What to do?

Reviewing your insurance offers is advisable. For years, KiS has advocated private supplementary long-term care insurance. Time and again we hear of cases where family members come to need care. Then it is good not to be dependent on the state.