Germany's €22 Billion Care Crisis Sparks Controversial Cost-Shifting Reforms

Germany’s long-term care insurance system is facing a €22 billion shortfall, pushing Health Minister Nina Warken to propose sweeping cuts. By mid-May, she plans to unveil an austerity package that could significantly raise costs for care home residents and reduce support for family caregivers.

The reforms have already drawn criticism from industry leaders, including Andreas Storm, head of health insurer DAK, who has urged Warken to abandon the changes. Under the current system, subsidies for residential care increase over time, reaching a 70% cap from the fourth year. Warken’s proposal would delay these increases and enforce the 70% limit only after four and a half years. This adjustment would force residents to cover more costs for longer.

At present, care home residents pay an average of €3,200 per month out of pocket. Research by Heinz Rothgang shows that Warken’s plan would add €161 to this monthly bill. Over the extended period, residents would face nearly €20,000 in extra expenses.

The reforms also target family caregivers, with Storm warning that Warken may suggest halving their pension entitlements. Additionally, subsidies for residential care would be reduced, and their disbursement delayed, further tightening financial support for those in need. If implemented, the changes would shift a greater financial burden onto care home residents and their families. The proposal aims to address the system’s €22 billion deficit, but critics argue it risks making long-term care unaffordable for many. Warken’s final plan is expected by mid-May.