German Nursing Care Funds Face Financial Crisis, Contribution Hikes Likely

The first-ever federal bailout for a nursing care fund highlights the critical state of Germany's care insurance system.

The Social Insurance for Agriculture, Forestry, and Horticulture (SVLFG) has become the first nursing care fund in Germany to require federal financial assistance to avoid insolvency.
The SVLFG received €8.5 million in emergency funding from the Federal Office for Social Security to stabilize its operations until December 2025.
Anne-Kathrin Klemm, head of the BKK umbrella organization, warned that additional care funds may require bailouts without urgent government action or increased contributions.
The financial strain is attributed to rising care costs, a growing elderly population, and unpaid pandemic-related expenditures totaling nearly €6 billion.
Experts predict further contribution increases to the nursing care fund system, potentially exceeding 5% of gross income in the coming years, unless structural reforms are enacted.