The head of Caritas, Eva Welskop-Deffaa, believes the ongoing reforms to social systems present a critical opportunity to rebuild public trust in democratic institutions.
“The future of democracy hinges on the citizens’ confidence in the core institutions of the welfare state and social insurance programs are particularly crucial” Welskop-Deffaa stated in an interview with Funke-Mediengruppe newspapers.
She emphasized that reforms to pension, healthcare and long-term care insurance require a focus on streamlining administrative processes, particularly within health insurance and fostering sustainable, spatially-oriented care models for those in need. Adjustments to contribution assessment limits, ensuring higher incomes are adequately factored in, will also be necessary.
Acknowledging demographic shifts, Welskop-Deffaa highlighted the need to consider equitable distribution of financial burdens between younger and older generations. She underscored the importance of a discussion regarding the proportion of funding provided through contributions versus taxation, noting that Caritas advocates for the continued strength of the statutory, contribution-based social insurance system. She stressed that state subsidies should primarily serve as supplementary support, directed where it is both justified and beneficial to the system.
Addressing the current financial challenges faced by healthcare providers, Welskop-Deffaa pointed out that the situation is exacerbated by the fact that individuals receiving social welfare benefits do not receive corresponding support from the federal budget. She further elaborated that the precarious situation of long-term care insurers is also linked to the federal government’s failure to reimburse them for substantial COVID-related costs.