Overview

• Germany’s statutory long-term care insurance is projected to face a €1.65 billion deficit in 2025, rising to €3.5 billion by 2026, according to DAK-Gesundheit forecasts.
• Fraud in substitute care programs, facilitated by minimal oversight and simplified application processes, has been flagged as a significant issue, with ongoing investigations and prosecutions.
• New Health Minister Nina Warken is advocating for federal compensation for pandemic-related costs and has announced plans to establish a federal-state working group to address long-term structural reforms.
• Experts, including economist Veronika Grimm, suggest aligning benefits with realistic contributions, which may entail benefit reductions and higher self-pay requirements.
• Public confidence in the care system is plummeting, with over 90% of Germans doubting its reliability and fearing that only the wealthy will afford quality care in the future.