Care Home Costs for Residents Reach Record Highs in Germany

Despite increased subsidies and adjustments to insurance benefits, out-of-pocket expenses for residents continue to climb across German states.

The average monthly cost for care home residents in Hesse rose to €2,433 in 2024, up from €3,205 in total costs in 2017, after insurance subsidies.
In Rhineland-Palatinate, out-of-pocket expenses increased to €2,553 by the end of 2024, nearing pre-subsidy levels from 2021.
Rising labor costs and additional fees, such as for accommodation and meals, are driving the increases despite policy efforts to limit financial burdens.
Adjustments to care insurance subsidies and planned benefit increases in 2025 are unlikely to reverse the trend of growing expenses, according to AOK projections.
AOK forecasts estimate that by 2029, average monthly costs for residents could climb to €3,824, even under moderate cost growth scenarios.