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Germany Weighs Care-Insurance Overhaul as Scrutiny of Pflegegrad 1 Draws Warnings

A merged annual respite budget introduced in July 2025 remains in force during the review.

Overview

  • The federal working group says it is reviewing all revenues, expenditures and the alignment of care grades, with interim findings expected in October and no outcomes predecided.
  • Patient and social organizations caution that abolishing Grade 1 would harm people with mild impairments, noting its 2017 introduction to better include dementia and that 861,000 people held this grade at the end of 2024.
  • Under 2025 rules for Grade 2, monthly entitlements include €347 in care allowance, up to €796 in in‑home professional services and a €131 relief amount.
  • Since July 1, 2025, replacement and short‑term care have been combined into a single flexible annual budget of up to €3,539, with extended half care‑allowance continuation and removal of the prior six‑month pre‑care requirement.
  • Practical calculations for Grade 2 show about €19,067 per year with family care plus add‑ons or roughly €24,455 with full professional in‑home services, reflecting the updated 2025 rates.