The Confederation of German Employers’ Associations (BDA) has presented a proposal for reforming long-term care insurance. According to Deutschlandfunk, benefits should in future be linked to general life expectancy. Employers are thus responding to rising care costs, which are increasing further due to an aging society.
The background to the initiative is the financial plight of the statutory long-term care insurance system. Contributions have been rising for years while the number of people in need of care grows. The BDA argues that linking benefits to life expectancy could stabilize contribution rates. Concretely, this would mean: if people live longer on average, benefits could start later or be reduced.
The proposal is likely to be politically controversial. Trade unions and social welfare organizations warn of a deterioration in care quality. The federal government has not yet taken a position. The debate on care financing is expected to continue in the Bundestag in the autumn.
Source: www.deutschlandfunk.de
