Alarming forecasts: nursing care rates threaten to rise next year!

Alarming forecasts: nursing care rates threaten to rise next year!

The financial situation of statutory nursing care insurance in Germany is becoming increasingly critical. According to a current report from DAK-Gesundheit, a deficit of 1.65 billion euros is forecast for 2025, while an increase in the deficit to 3.5 billion euros is expected for 2026. In view of these developments, a contribution increase of at least 0.3 contribution rate points will be necessary if no new financial resources are made available. The contribution rate for fund members with one child is currently 3.6 percent of gross income. The DAK CEO Andreas Storm is calling for immediate measures to avoid further premium increases, while the DAK is more critical of the financial situation of long-term care insurance than the National Association of Statutory Health Insurance Funds, which predicts a deficit of just 0.5 billion euros. Nursing care insurance was already on the defensive in 2024 with a loss of 1.54 billion euros.

Current developments show that the number of people in need of care will increase dramatically in the coming decades. It is estimated that this number could rise to 6.8 to 7.6 million by 2055. In order to counteract the rising costs, the DAK care report has shown that almost 80 percent of the population see a need for reform in geriatric care. This is supported by experts such as economist Veronika Grimm, who recommends benefit cuts and higher deductibles for care patients.

Effects on nursing care insurance

Health insurance companies are already warning of an “existential crisis” in statutory nursing care insurance, as Doris Pfeiffer, head of the umbrella association of statutory health insurance companies (GKV), reports. This crisis results from price increases and the increasing number of benefit recipients. The increase in the contribution at the beginning of 2025 by 0.2 percentage points is expected to generate additional annual income of 3.7 billion euros, but a loss of 300 million euros is expected for 2025. Experts predict that nursing care insurance will spend more than 70 billion euros for the first time in 2025.

In addition, payments for those in need of care have been increased by 4.5 percent, while the care insurance funds are increasingly covering costs in order to mitigate the out-of-pocket costs for those in need of care. Several political parties have proposed different approaches to improve the situation. The SPD wants to limit the personal contributions for nursing home care to 1,000 euros, while the Union is proposing tax resources and affordable supplementary nursing care insurance. The FDP is aiming for a funded component and the Greens want to finance non-insurance benefits through the state. The AfD also wants to merge health and nursing care insurance.

Political reactions and debates

The German Foundation for Patient Protection sharply criticizes politicians for the current financial crisis in long-term care insurance. Board member Eugen Brysch explains that social security loses almost six billion euros every year due to various measures. In view of the impending deficits, he, like other actors, is calling for the personal contribution to be capped at 1,000 euros per month. Health Minister Karl Lauterbach (SPD) had sought a major financial reform, but this has not yet been implemented. These different approaches underline the urgent need for reform so that the future of long-term care insurance can be secured.

The challenges and financial bottlenecks of long-term care insurance cast a shadow on the quality of care for those affected and require solutions as quickly as possible to ensure sustainable care in geriatric care.

For more information see Mercury and daily news.