The statutory care insurance system in Germany faces a looming crisis, with leading health insurance representatives warning that multiple care funds could become insolvent next year and require emergency financial assistance, despite a multi-billion euro federal loan. Oliver Blatt, CEO of the Association of Statutory Health Insurance Funds, cautioned that the current €4.2 billion in federal loans, while theoretically covering the projected deficit by 2026, offer only a precarious reprieve.
“The financing is stretched to the absolute limit” Blatt stated to the Redaktionsnetzwerk Deutschland. “We anticipate that individual care funds will require liquidity support next year. While a procedure exists for this, it underscores the urgent need for reform.
This isn’t a novel concern. In February 2025, one care fund was already forced to request emergency funds from the statutory care insurance equalization fund to avert insolvency, a stark indicator of the systemic fragility. Blatt highlighted that the situation will dramatically worsen by 2027 when the existing loans expire, leaving a significant funding gap estimated at approximately 0.3 contribution points. Without fundamental reforms, the care insurance system simply cannot sustain this trajectory.
Criticism has been directed towards the Federal-State Working Group tasked with care reform, whose recent inconclusive recommendations were deemed inadequate. Blatt expressed concern that the severity of the situation hasn’t fully registered with key decision-makers. “I have the impression that the urgency isn’t clear to all those involved.
Blatt specifically advocated for stricter criteria for determining care dependency and assigning individuals to the five care levels. He points to the 2017 reform, which broadened eligibility significantly – a decision he argues deviated from scientific recommendations regarding the inclusion of individuals with dementia. This expansion has led to a near doubling of the number of care recipients, rising from three to nearly six million. While demographic shifts play a role, Blatt emphasized that the increased demand is largely attributable to the 2017 reform’s overly generous provisions. “We must confront this development. We can no longer allow this to continue”. The implications of failing to address this challenge could lead to a complete breakdown of Germany’s crucial social safety net.