Nursing insurance providers seek prompt assistance from health insurance firms.
The financial situation of the long-term care insurance is facing challenges. In response, statutory health insurers and social associations are urging the federal government to take swift action. "The financial predicament of the social long-term care insurance isn't a secret," stated Doris Pfeiffer, chairwoman of the GKV association. "For quite some time, we've been alerting people that the premiums for the long-term care insurance are not matching the spending."
If no changes are made to the long-term care insurance, Pfeiffer anticipates a hike of at least 0.25 percentage points in contribution rates starting January 1, 2025, to maintain solvency. She advocates for two immediate measures to temporarily boost the long-term care insurance, which would, however, necessitate massive investment from the federal government. Such financial aid from the government could provide a window of opportunity, "to thoroughly reform the long-term care insurance sustainably."
Firstly, Pfeiffer requested that the federal government shoulder the approximately 5.3 billion euros in special expenses of the long-term care insurance stemming from the coronavirus period. Secondly, she suggested relieving the long-term care insurance of the responsibility of making pension contributions for caregivers. This represents a cost of 4 billion euros this year, and it's projected to increase. "It's not a responsibility that should be born by contributions, but a state responsibility to be financed by federal funds," Pfeiffer emphasized.
Social Association Pushes for Comprehensive Long-Term Care Insurance Reform
The German Social Association (SoVD) also promoted comprehensive reforms. "We need a comprehensive long-term care insurance that covers all costs and provides significant relief to care-dependent individuals," said SoVD chairwoman Michaela Engelmeier to Funke newspapers. She urged expanding the contribution base. "Everyone should contribute to this solidarity insurance, including privately insured individuals like the self-employed and civil servants."
Economist Martin Werding shared similar sentiments with Funke newspapers. He noted that the government had boosted benefits substantially over the years, but the financial implications for the long-term care insurance under the backdrop of demographic aging had not been acknowledged.
Werding expressed doubts about any short-term solutions. "On the contrary, the contribution rates for the long-term care insurance would need to escalate even further if all existing claims, particularly for home care support, were to be completely covered," Werding cautioned.
The demands arose following a report in RND newspapers suggesting that the long-term care insurance would go bankrupt without reform by February. However, the Federal Ministry of Health refuted these concerns. "The long-term care insurance is not bankrupt. Lawmakers will ensure its survival," highlighted a ministry spokeswoman.
The ministry stated that the Federal Minister of Health would soon introduce a concept to stabilize the long-term care insurance in the short and long term. According to RND Media Network (RND), an emergency plan is being developed in the coalition government. The RND further reported, citing coalition sources, that insolvency is imminent. However, the ministry could not confirm this information as stated.
Given the prediction of a significant increase in contribution rates for the long-term care insurance, Pfeiffer advocates for the federal government to intervene and provide financial aid, potentially leading to a comprehensive health reform of the long-term care insurance.
In light of the financial challenges facing the long-term care insurance, the German Social Association (SoVD) calls for comprehensive reforms, including the expansion of the contribution base and relief from making pension contributions for caregivers.
