Germany's Long-Term Care Reforms Spark Poverty Fears Among Residents

The German Health Ministry is planning major changes to long-term care subsidies. Proposed reforms would delay increases in financial support and cap coverage at 70% after four and a half years. Critics warn these measures could push residents deeper into poverty and worsen the ongoing care crisis. Currently, care home residents pay around €3,200 per month on average. Subsidies gradually rise the longer someone needs care. But under the new plan, these increases would be postponed, forcing residents to cover more costs themselves.

Experts calculate that over four and a half years, residents would face nearly €20,000 in extra expenses. Monthly out-of-pocket costs could climb by an average of €161. The reforms are part of a broader austerity package, which Health Minister Nina Warken intends to unveil by mid-May.

Andreas Storm, head of health insurer DAK, has urged Warken to rethink the changes. He argues the proposals would heighten poverty risks for those in long-term care and strain an already struggling system. Storm also expects the minister to suggest cutting pension entitlements for family caregivers by half.

Without these reforms, Germany’s social long-term care insurance faces a projected deficit of over €22 billion in the next two years. The planned cuts aim to reduce costs but have drawn sharp criticism from industry leaders. The proposed reforms would limit subsidy growth and cap coverage at 70% after 54 months. Residents would pay significantly more, with average monthly costs rising by €161. The government insists the changes are necessary to prevent a €22 billion shortfall, but critics fear they will deepen financial hardship for vulnerable groups.