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Coalition Deadlocked Over Care Reform as Statutory Fund Faces Deep Shortfall

The care insurance faces a pull on payments unless lawmakers agree urgent fixes and Health Minister Carsten Linnemann wants a commission to propose structural reform by spring 2027.

Overview

  • The Spitzenverband der gesetzlichen Kranken- und Pflegeversicherung warned the statutory long-term care insurance has a large funding gap and could face payment trouble without extra support.
  • Intensive talks inside the CDU/CSU–SPD coalition have left a planned cabinet decision uncertain because the SPD demands structural measures while the Health Ministry prefers a commission-led redesign.
  • The SPD presses for parity adjustments between private and statutory care insurance and a 'Pflegedeckel' to cap residents’ out-of-pocket costs, a demand Linnemann rejects and wants delayed for the commission to resolve.
  • Care organisations and insurers criticised parts of the draft law, specifically proposed higher access hurdles for care grades and the planned removal of the Entlastungsbetrag for Pflegegrad 1, saying these moves would not reduce real need.
  • Stakeholders including the BKK umbrella urged the coalition to pass at least a measure that moves funding and cost control forward because delay risks payment disruptions and growing pressure on care recipients and providers.