Cost explosion in care home: Greens demand care cap of 1,000 euros - Germany’s long-term care reform seeks to slash skyrocketing nursing home costs
A federal-state working group is now tackling reforms to Germany’s long-term care insurance system. Led by Health Minister Warken, the committee aims to ease the financial burden on care-dependent individuals, with proposals due as early as next week. Current out-of-pocket costs for nursing home residents often exceed €3,000 per month, placing heavy strain on families.
In July 2023, residents in nursing homes paid an average of over €3,000 monthly for care, with costs climbing even higher in regions like Bremen (€3,449) and North Rhine-Westphalia (€3,427). Despite relief supplements introduced in 2022, expenses continue to rise, as standard insurance covers only part of the bill.
The working group, featuring representatives from the CDU/CSU, SPD, Greens, FDP, and Left Party, is exploring ways to cut personal contributions. One proposal, the 'base-cap swap,' would restructure how costs are shared, while another suggests mandatory supplementary insurance. The Greens have pushed for a €1,000 monthly cap on out-of-pocket expenses—a measure the SPD also backed in its last election campaign.
To fund these changes, discussions include raising the income threshold for contributions (currently €66,150) and expanding the types of income subject to long-term care levies. The Greens advocate broadening the base to cover capital gains, rental income, and even parliamentary allowances. They also propose using tax revenues to cover nursing training costs and reimbursing pension contributions for family caregivers.
Family support remains a key issue. The Greens want to merge care leave and family care leave laws while introducing reliable wage replacement for caregivers. Additional proposals include reimbursing pandemic-related extra costs and strengthening the long-term care reserve fund.
The working group’s recommendations, expected next week, will shape future reforms. If adopted, measures like contribution caps and expanded income assessments could reduce financial strain on care recipients. The debate now centres on balancing affordability with the system’s long-term stability.
