Collapse of nursing care insurance: Experts sound the alarm!

Collapse of nursing care insurance: Experts sound the alarm!

Statutory nursing care insurance in Germany faces enormous challenges. Experts have long been warning of a collapse of social care insurance, particularly given the increasing number of people in need of care and the longer duration of care, which is being driven by the baby boomer generation, who will need care in the near future. In view of these developments, the federal government plans to address the issue of nursing care insurance. A federal-state working group entitled “Future Care Pact” was recently set up to develop reforms to deal with financing problems ZDF reported.

Currently, nursing care insurance only covers part of the costs, which is why those affected or their relatives have to cover their own contributions. In 2023, the total expenditure on long-term care insurance was around 59.2 billion euros, while the number of people in need of care has almost doubled in the last ten years. Estimates from the Federal Statistical Office show that up to 7.6 million people in need of care are expected in 2055. These figures make the current situation obviously unsustainable, as the nursing care insurance deficit for 2025 is estimated at 1.65 billion euros and will continue to rise in the following years RP Online leads.

Conflicts and demands

The ongoing discussion about the future of long-term care insurance is leading to a tough distribution battle, especially at the beginning of the working group. Trade unions are calling for nursing care insurance to be converted into fully comprehensive insurance, which is, however, seen as unaffordable and as an increase in additional wage costs. The conversion to fully comprehensive insurance is largely viewed as the wrong approach, as current social security contributions for employees and employers are already over 40 percent, which underlines the need for a pragmatic solution.

The idea of ​​citizens' insurance is also rejected as a solution to addressing demographic challenges. In addition, nursing care insurance is viewed as part of social insurance, with compulsory insurance for those with statutory health insurance and private nursing care insurance for those with private insurance. Employers and employees pay equal contributions of 1.8 percent of gross wages, with childless employees having to pay an additional 0.6 percent.

Planned reforms and perspectives

Federal Health Minister Nina Warken is planning short-term stabilization measures for nursing care insurance with loans worth billions, including 0.5 billion euros for 2025. The introduction of a nursing allowance as a wage replacement for caring relatives is being praised. The coalition agreement between the Union and the SPD outlines a comprehensive reform of long-term care insurance, with a planned draft law that is to be presented at the beginning of 2026. The reform proposals include citizens' insurance for civil servants and the self-employed as well as higher contributions for high earners.

There are also efforts in the industry to improve working conditions. Schön Klinik is testing the introduction of a four-day week for nursing staff in order to increase satisfaction and the number of applications. In order to sustainably improve the care situation, support for people in need of care, new forms of living and prevention offers are crucial in order to counteract the ongoing challenges of long-term care insurance.