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Insurers Warn German Care Funds Need Emergency Aid in 2026 as Loans Run Out by 2027

The GKV chief says borrowing of €4.2 billion only papers over deficits, pressing for stricter recognition of care need.

Overview

  • Oliver Blatt of the GKV-Spitzenverband says the long-term care insurance system is “living on debt,” financed by federal loans now totaling €4.2 billion.
  • The association expects individual Pflegekassen to require liquidity assistance in 2026 through the Ausgleichsfonds, after the first such bailout was triggered in February 2025.
  • Blatt warns the federal loans will be exhausted in 2027, creating a financing gap roughly equal to 0.3 percentage points of the contribution rate without corrective measures.
  • He advocates tightening the criteria for recognizing care dependency and assigning care grades, arguing the 2017 reform was very generous and helped double beneficiaries to nearly six million.
  • Health insurers and associations criticize the recent Bund-Länder working group’s report as offering no concrete financing options, while deficits and staffing shortages intensify the strain on the system.