Nursing insurance on the brink of financial collapse – with escalating premiums demanded.
It appears that the financial situation for statutory long-term care insurance is becoming increasingly severe. According to reports from the Redaktionsnetzwerk Deutschland (RND), some coalition circles are suggesting that the insurance may struggle to meet its financial obligations as early as February 2023 if no action is taken. As a result, discussions about an emergency intervention are already underway.
Previously, health insurance funds had predicted a 0.2 percentage point increase in contributions. However, it seems that this increase may not be sufficient. Instead, the government is reportedly considering an increase of around 0.25 to 0.3 percentage points due to the potential complexity of forming a new government after the 2025 federal election. This increased contribution rate would aim to ensure that funds remain available until at least the spring of 2025.
Currently, the standard contribution rate for statutory long-term care insurance is 3.4%, with childless individuals paying 4%. Families with multiple children under 25 typically receive discounts. An increase of 0.3 percentage points, combined with the anticipated 0.7 percentage point hike in health insurance contributions, could result in social security contributions growing significantly more than they have in over 20 years by the beginning of 2025.
It's also worth noting these developments come amid a legal opinion requiring the federal government to fully reimburse long-term care insurance for any extra costs incurred during the COVID-19 pandemic. DAK-Gesundheit health insurance company, for constitutional reasons, believes this reimbursement is necessary due to the financial responsibility of funding COVID-19 tests and care bonuses for employees. As a result, long-term care insurance incurred around 13 billion euros in additional expenses, according to DAK's statements. However, it remains unclear whether this reimbursement will significantly impact the financial stability of statutory long-term care insurance.
The costs of increase in social security contributions due to long-term care insurance and health insurance are a cause for concern, potentially leading to significant growth by 2025. Addressing these costs of care becomes crucial to ensure the financial viability of statutory long-term care insurance.
