German Care Insurance Faces Financial Crisis as Contribution Hikes Loom

The head of the BKK warns that without immediate government support, higher contributions will be necessary to prevent insolvency in the care insurance system.

Anne-Kathrin Klemm, head of the BKK, has called for urgent government intervention to address the alarming financial state of Germany's care insurance system.
The first instance of a care fund requiring liquidity assistance occurred recently, with the Landwirtschaftliche Pflegekasse receiving €8.5 million to avoid insolvency.
Klemm emphasized that without immediate measures, further contribution increases may be required as early as this summer to stabilize the system.
The financial strain stems from a growing number of care-dependent individuals, increased care-related expenditures, and residual costs from the COVID-19 pandemic.
Experts warn that without structural reforms, additional care funds may face financial distress, threatening the broader stability of the care insurance system.