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German Government Weighs Axing Care Level 1 to Plug Long-Term Care Funding Gap

The option is under discussion to ease financing pressures in the system, with initial reform recommendations expected from a commission in mid-October.

Overview

  • Bild reported that the Merz government is considering abolishing Pflegegrad 1 to address a funding shortfall in the statutory long-term care insurance.
  • Health Minister Nina Warken said no benefits would be taken away overnight but did not rule out changes to the entry-level grade.
  • The SPD parliamentary group rejected benefit cuts in the care insurance, signaling internal political resistance to the idea.
  • Welfare and patient advocates warned that ending Pflegegrad 1 would harm vulnerable groups, including people with dementia, and shift burdens to families.
  • More than 800,000 people currently have Pflegegrad 1 within a system covering about 4.8 million beneficiaries, which includes a €131 monthly relief allowance, and commentators estimate the grade’s annual cost at roughly €1.8 billion.