A report by Germany’s Federal Audit Court (BRH) has flagged a significant funding shortfall within the Social Care Insurance (SPV) system, projecting a gap of €12.3 billion by 2029. The findings, detailed in a report circulated to the Parliamentary Budget Committee ahead of upcoming budget deliberations, highlight growing concerns about the long-term financial stability of the care system.
According to figures from the Federal Ministry of Health (BMG), the situation is predicted to worsen considerably in the coming years. A deficit of €3.5 billion is anticipated for 2026, escalating to €12.3 billion by 2029.
The projected shortfall is attributed to a surprisingly rapid increase in the number of individuals requiring care services and the capping of co-payments for in-patient care. The report indicates that, by the end of 2024, 5.6 million members were classified as requiring care, representing a 7.7% increase compared to the previous year – equivalent to 400,000 more individuals.
The BRH’s assessment is notably critical of current government policy regarding care provision, urging a more accelerated pace of reform. A joint Federal-State working group, initiated by Federal Health Minister Nina Warken (CDU), is scheduled to commence discussions on Monday to lay the groundwork for a comprehensive reform package. The BRH report emphasizes that the underlying causes of the crisis are well-understood and numerous reform proposals are already available but that implementation has lagged.
Furthermore, the audit court questioned the efficacy of a planned €2 billion loan earmarked by Federal Finance Minister Lars Klingbeil (SPD) for the SPV in 2025 and 2026. The BRH argues that this loan will not resolve the fundamental financial issues and that a substantial reform of the SPV remains the necessary path forward.