Germany’s long-term care insurance funds are facing a deficit of around 4.4 billion euros this year, according to the National Association of Statutory Health and Care Insurance Funds (GKV). The first half of the year already saw a shortfall of 770 million euros. Even the current emergency loan of 3.2 billion euros and funds from the care equalization reserve will not be enough to close the gap, the association says.
Katrin Staffler, the federal government’s care commissioner, dismissed fears that the funds might become insolvent. “Of course, we will not let the care funds go bankrupt,” she told Bavarian Broadcasting. Federal loans could bridge the time until the planned care reform takes effect at the beginning of next year. However, the reform then needs to be implemented swiftly.
The care reform, which is due to be approved by the cabinet in September, includes stricter criteria for assigning care levels and a slight increase in the care contribution for childless people to 4.3 percent. Health Minister Carsten Linnemann (CDU) also wants to restrict the free co-insurance of spouses. There is also criticism from within the governing coalition, particularly regarding the planned savings.
Source: Tagesschau
