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Germany Weighs Axing Care Level 1 as Parties Split on Fixing Insurance Gap

A federal–state commission aims to table reform options by mid-October after auditors warned of a multibillion-euro shortfall in long-term care insurance.

Overview

  • North Rhine-Westphalia health minister Karl-Josef Laumann signaled openness to reworking the care-grade system, while SPD leaders publicly rejected benefit cuts.
  • Social groups including VdK, SoVD and the DGB cautioned that removing the low-threshold level would strain families and weaken early support that helps people stay at home.
  • End-2024 counts show roughly 863,700 people in Care Level 1, and an RWI estimate suggests abolishing it could save about €1.8 billion annually.
  • Economists warn projected savings may be offset if some beneficiaries are reclassified into higher, costlier grades, a risk highlighted by Boris Augurzky.
  • The Health Ministry has not made a decision, and the Bund–Länder working group is expected to present initial proposals by mid-October following warnings of a €3.5 billion gap.