Germany's Nursing Care Reform Act shifts financial burden to residents and cities

Germany is set to introduce changes to its long-term care system under the new Nursing Care Reform Act. The proposal aims to control rising care costs but will increase financial pressure on residents and local authorities. More than 6 million people in Germany currently need long-term care. The reform will raise out-of-pocket expenses for nursing home residents, with average monthly costs already at €3,200 in the first year.

Stricter assessments will make it harder to qualify for benefits. The lowest care level (Grade 1) will lose its monthly relief allowance of €131. It will also take longer to move to the next subsidy tier.

Social welfare offices will have to cover costs for residents who cannot afford them. This shifts the financial burden onto municipalities. The reform may push the share of nursing home residents relying on social welfare from 36% today to 46% by 2035.

A new entitlement to individualised care counselling will be introduced for family caregivers. The Nursing Care Reform Act seeks to limit growing care expenses. However, it will increase personal costs for residents and force more people to depend on social welfare. Municipalities will bear a greater financial load as a result.