Government officials are addressing the ongoing debate surrounding the escalating costs of care facilities, highlighting the existing structure of the care insurance system and emphasizing the importance of private provisions for long-term care needs.
Thorsten Frei, Minister at the Chancellery for the Christian Democratic Union (CDU), underscored that the care insurance system, established in the 1990s, functions as a “partial benefit system”. He cautioned against the expectation that it will comprehensively cover all potential care expenses.
Frei emphasized the continued necessity for individuals to arrange for private provisions to manage potential care needs. This perspective is particularly relevant given the ongoing demographic shift, which is projected to significantly increase the number of individuals requiring care in the years to come. He noted a worsening ratio of care recipients to contributors in recent years, contributing to a growing deficit within the care insurance system.
“The deficit of the care insurance will undoubtedly continue to increase” Frei stated. Consequently, he argued that limitations on care costs – wherever feasible – are unavoidable. He further pointed out that few individuals can reasonably expect a pension income sufficient to cover the substantial costs associated with care facility placement, such as a monthly expense of 3,000 euros.