Nursing care insurance crisis: Billion dollar deficit and premium increase looming!

Nursing care insurance crisis: Billion dollar deficit and premium increase looming!

German nursing care insurance is facing serious financial challenges. As the Mercury reports, a deficit of 1.65 billion euros is forecast for 2025 and even 3.5 billion euros by 2026, which could have alarming consequences for the care of those in need of care.

In response to the difficult financial situation, a contribution increase of at least 0.3 contribution rate points is considered unavoidable unless new financial resources are made available. In 2024, the deficit was already 1.54 billion euros, while care contributions were increased by 0.2 percentage points at the beginning of 2025, which experts consider to be insufficient. The burden for fund members with one child is currently 3.6 percent of gross income.

Political reactions and need for reform

The new Health Minister Nina Warken is planning a financial injection to stabilize long-term care insurance and is calling for the federal government to compensate for the billions in expenses incurred during the corona pandemic. Warken also announces the imminent launch of a federal-state working group for fundamental reforms, but acknowledges that these will take time. Over 5 billion euros that the federal government owes the nursing care funds make the situation even more precarious.

The Social Association of Germany (SoVD) expresses sharp criticism of planned benefit cuts, which, according to SoVD boss Michaela Engelmeier, would not only exacerbate social inequality but also endanger the care of those in need of care. Economist Veronika Grimm, on the other hand, is calling for higher deductibles from care patients and warned that the existing contributions are not sustainable.

Public opinion and future challenges

A survey in the DAK care report shows that almost 80% of the population see a fundamental need for reform in geriatric care. Forecasts indicate that the number of people in need of care could increase from the current 5.6 million to between 6.8 and 7.6 million by 2055. In this context, discussions about sustainable financing are becoming more urgent.

In addition, the Union-led states, especially Bavaria under Health Minister Judith Gerlach, are putting pressure on people to avoid higher contributions. For many players, it is clear that a future-proof foundation for long-term care insurance income is urgently needed. Eugen Brysch from the German Patient Protection Foundation underlines the need for such measures as countries continue to call for quick solutions and reforms to address the challenges of long-term care insurance.

The situation remains tense and it remains to be seen what specific measures will be taken in the near future to ensure the financial stability of long-term care insurance and to ensure the quality of care services.

For more information, also read the article Time.