Germany's long-term care reform sparks fears of financial strain on families

A planned reform of Germany’s long-term care insurance system has sparked concerns over financial pressure on families and caregivers. Health Minister Nina Warken will unveil a draft proposal in mid-May, following a Constitutional Court ruling on generational contributions. Critics warn the changes could create new burdens for those needing care and their relatives. The Federal Constitutional Court recently ruled that generational contributions must carry more weight in long-term care funding. This decision has prompted discussions about restructuring the system, with one proposal suggesting a delay in reducing personal contributions for care facility residents. Instead of the current 12-month threshold, the new plan would extend this to 18 months.

Caritas President Eva Maria Welskop-Deffaa has raised alarms about the potential fallout. She cautioned that the reform might push families to transfer assets to relatives before requiring care, undermining the system’s fairness. Welskop-Deffaa also stressed the importance of maintaining contribution-free family co-insurance, tiered contribution rates, and pension protections for caregivers.

Meanwhile, Health Minister Nina Warken has emphasised the need for stronger support for family caregivers. She acknowledged their crucial role in the system, which relies heavily on intergenerational solidarity. However, Caritas warns that the proposed changes risk increasing out-of-pocket costs for residential care recipients, adding to their financial strain. The reform aims to ease short-term financial pressure on the long-term care system. Yet, critics argue it could weaken the phased relief model and place heavier burdens on vulnerable groups. The draft proposal, due in mid-May, will determine how these concerns are addressed.