Germany to hike long-term care contributions amid €22bn deficit crisis
German Health Minister Nina Warken has announced plans to raise contributions for long-term care insurance. She criticised past governments for leaving the system in a 'catastrophic condition' due to unsustainable benefit expansions. The move comes as the scheme faces a growing financial shortfall. Germany’s social long-term care insurance has struggled for years with spending far outpacing revenue. The deficit is now expected to exceed €22 billion within the next two years. Warken aims to tackle this by increasing contributions, particularly for those on higher incomes.
Currently, contributions apply to earnings up to €5,812 gross per month. The minister has ruled out scrapping the five-tier care dependency system, which expanded from three levels in recent years. Instead, she will propose reforms and cost-cutting measures by mid-May to prevent further contribution hikes. Warken’s approach focuses on shifting more of the financial burden onto better-off earners. She argues that previous expansions of benefits without adequate funding have worsened the system’s stability. The upcoming proposals will seek to balance the books while maintaining existing care standards.
The planned reforms will target higher earners to reduce the growing deficit. Warken’s proposals, due in mid-May, aim to stabilise long-term care funding without cutting existing benefits. The changes could reshape how contributions are shared across income levels.
