Likely Increase in Care Contribution at the Beginning of 2025
Health insurance funds are planning higher contributions for 2025 due to the stress on the care system. A social expert goes further by suggesting that care recipients cover their own expenses in the first year.
By the start of 2025, people should brace themselves for another rise in health insurance contributions for long-term care. The DAK and the Association of Statutory Health Insurance Funds in North Rhine-Westphalia (VdEK) anticipate an increase as well. VdEK expressed to the "Rheinische Post" that the long-term care insurance funds believe "financial resources in the first quarter of 2025 will be less than monthly spending." Therefore, the federal government has the power to boost the contribution rate by a legal order. As of now, "the securing of the system's payment ability indicates a likely rate increase as early as the beginning of 2025."
Also, in April, DAK board member Andreas Storm expressed the need for a hike in the long-term care insurance contributions, likely at the turn of the year, and possibly by "two contribution cents." Likewise, the Independent Advisory Board of the Stability Council anticipates an increase in social insurance contributions by half a percentage point next year.
Federal Health Minister Karl Lauterbach clarified on Monday that a nursing reform is unlikely with the current Ampel partners. Regarding the rising number of care recipients, he stated, "this is more than disappointing." VdEK boss Dirk Ruiss believes private insurance companies should help defray the costs. He suggests private long-term care insurance participate in a financial partnership with the public insurance, possibly providing relief of up to two billion euros annually. Furthermore, he considers the financing of pension contributions for caregivers through tax revenues, which would result in 3.7 billion euros in relief for the long-term care insurance.
The initial plan is to secure the finances of the long-term care insurance by 2025. The German parliament decided to increase contributions for childless people from 4% to 7%. For contributors with children, they rose from 3.4% to 3.2%. The employer contribution increased to 1.7%. As more children mean a lower contribution, the Association of Statutory Health and Long-Term Care Insurance Funds expected action in contributions by 2025 at the latest. Now, according to expert information, significant funding gaps are occurring.
The social expert from Freiburg, Bernd Raffelhüschen, backs a one-year self-contribution by care-dependent individuals. He suggests that these individuals pay for the care costs, "only then will payments flow from the care insurance." The economist predicts a significant increase in the contribution rate, estimating it to reach "around 7 percent for childless people by 2040."
The Medical Service of the Health Insurance Funds (MDK) also expects a massive increase in the number of care cases due to the rise in dementia cases. "Estimates suggest that the number of people with dementia will continue to increase significantly if no breakthrough in therapy and prevention is made," Carola Engler, deputy MDK federal board member, told the Augsburger Allgemeinen. This year, assessors at the care insurance funds had to process 160,000 more new applications than the previous one, totaling 1.35 million.
Lauterbach warned on Monday about a surge in the number of care cases. He said that in the previous year, more care-dependent individuals than usual came forward, totaling 361,000.
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In light of the anticipated financial strain on long-term care insurance funds due to increased expenditures, it may become necessary for individuals to cover some of their own costs in the initial stage of needing care, as suggested by a social expert. The cost-effectiveness of incorporating private long-term care insurance into a financial partnership with public insurance is also being considered to alleviate some of the financial burden.
Source: www.ntv.de
