German Health Minister Nina Warken (CDU) plans to implement reforms in long-term care that are anticipated to place significantly greater burdens on residents of nursing homes. According to information from the “Redaktionsnetzwerk Deutschland” initial drafts for the reform, which aim to plug the multi-billion-euro deficits in the long-term care insurance, suggest changes that will slow down the increase of staggered subsidies that residents currently receive to reduce out-of-pocket expenses. Specifically, the different increase levels will no longer take effect after just twelve months, but instead, they will only become effective after eighteen months. This means that individuals will benefit from the gradually increasing subsidies for a longer period. Conversely, the long-term care insurance expects to save billions in expenditure. Under the proposed changes, the 15 percent subsidy will apply for the first eighteen months, rather than just the first twelve. The subsequent increase to 30 percent will only take effect thereafter. Furthermore, the next stage of 50 percent will be granted not after 24 months, but only after 36 months. The highest level of relief, a subsidy of 75 percent, will only be provided after a residency period exceeding 54 months, compared to the current benchmark of 36 months. Moreover, it is expected to become more difficult for all insured persons to be officially recognized as needing long-term care or classified into the lower care grades. The plans stipulate that a higher degree of impairment will be required to achieve care grades 1, 2, and 3. This revision is anticipated to have a massive impact on the total number of people requiring care, and consequently on the insurance’s expenditures. Additionally, a planned restriction in health insurance-eliminating the contribution-free family insurance-is set to be transferred to the long-term care insurance. According to the plans, co-insured spouses who neither raise minor children nor care for relatives will need to pay an additional contribution of 0.7 percent to the long-term care insurance. Finally, similar to the health insurance, the system intends to place a higher financial burden on high earners by raising the contribution assessment ceiling. Whether this increase will remain at an unscheduled rise of 300 euros or if an even stronger hike will occur remains undetermined.
Pflegereform Warns of Major Burden Hike for Nursing Home Residents
