Expanded health insurance deficiency may soar exponentially by billions
Germany's care insurance system is bracing for substantial financial strains in the coming years, as a result of demographic changes and associated factors. The aging population and rising care needs are driving up costs and creating funding gaps that require urgent policy intervention.
According to recent projections, the number of people in need of care is expected to rise significantly, with official forecasts predicting that there will be between 6.8 million and 7.6 million people in need of care by 2055. This demographic shift increases the demand for care services, pushing costs higher.
As life expectancy increases, more people live longer with chronic illnesses and disabilities, leading to higher utilization of care resources. The care system faces rising costs due to wage increases for care workers, higher standards for care quality, and greater use of medical and nursing interventions.
These combined effects are creating a financial gap in the social care insurance system, meaning that current funding mechanisms may be insufficient to cover the anticipated expenses. Without reforms, the care insurance system is projected to experience substantial funding shortfalls in coming decades.
The board of the German Foundation for Patient Protection, Eugen Brysch, has accused the federal and state governments of plundering the care insurance by almost 15 billion euros annually. The growing deficit is attributed to the unexpectedly strong increase in the number of people in need of care and the cap on the own contribution for care services in a nursing home.
Brysch has called on the federal government to "finally settle its debts with the care insurance." The federal government plans to support the statutory care insurance with loans of 0.5 billion euros this year and 1.5 billion euros next year, but these are considered emergency measures, and structural reforms are needed in the long term.
The interstate working group has begun reforming the care insurance system, with the aim of developing a plan to keep care affordable and effective by the end of the year. The German Foundation for Patient Protection has called for a cap on the pure care costs for those in need of care at 1,000 euros per month.
Residents of care homes currently pay 3.8 billion euros annually for medical care in care facilities, and an average of 4.8 billion euros for investment costs. The own contribution for pure care is reduced by 15 percent in the first year, 30 percent in the second, 50 percent in the third, and 75 percent from the fourth year onwards.
The Federal Court of Auditors has warned that granting loans does not solve the financial problems of the care insurance system. The working group aims to address these issues by finding long-term solutions to maintain the sustainability of the care insurance system.
Sources: [1] European demographic context and aging trends (various sources) [2] German Foundation for Patient Protection (various statements and reports) [3] Federal Court of Auditors (various reports) [4] Official forecasts and projections (various sources)
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