Germany's long-term care crisis prompts urgent insurance reform by May

German Health Minister Nina Warken (CDU) has announced plans to reform the country’s long-term care insurance system. With the scheme facing a projected deficit of over €22 billion in the next two years, she aims to introduce cost-cutting measures and higher contributions by mid-May. The social long-term care insurance system has struggled for years, with spending consistently outpacing revenue. Warken criticised previous ministers for leaving the system in a 'catastrophic condition' due to repeated benefit expansions. She has ruled out scrapping the current five-tier dependency levels, which were expanded from three tiers.

To address the financial shortfall, Warken intends to raise contributions for those earning above the current threshold of €5,812 gross monthly salary. Her proposals will be finalised and presented within weeks to prevent further contribution hikes in the future.

The reforms aim to stabilise a system burdened by rising costs and insufficient funding. Warken’s plan will focus on reducing expenditure while maintaining existing support levels. The changes are expected to take effect once approved by lawmakers.