German government agrees on long-term care insurance reform — The Local Germany

In Germany, the governing coalition has agreed on a draft reform of mandatory long-term care insurance. The cabinet in Berlin approved Health Minister Carsten Linnemann’s proposal without changes, The Local Germany reports.

Measures to reduce the deficit

The reform primarily provides for savings, as the mandatory long-term care insurance system already has a significant deficit. According to government spokesperson Stefan Kornelius, without changes the programme’s deficit will exceed €15 billion by 2028.

Linnemann said the system is under “enormous financial pressure” and must deliver savings. At the same time, he denied that the proposed changes were an austerity plan. According to him, payments that fund the system will remain unchanged for most workers, but childless people and high-income earners will pay more.

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Disputes within the coalition

Some politicians from the Social Democratic Party of Germany, the junior coalition partner, have criticised the draft in recent days. They argued that it relies on spending cuts and reduced benefits to improve the programme’s financial position.

Mandatory long-term care insurance is part of Germany’s social security system. According to the minister, the number of people covered by this system has tripled over two decades to 20 million.

People aged 67 and over make up one fifth of the country’s population, and by 2035 their share is projected to rise to one quarter, according to an official forecast. The bill also provides for the creation of an expert commission to prepare a report on how to structurally strengthen the long-term care sector.