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Long-term care insurance: GKV warns of funding gap by year-end

Germany's statutory health insurance association (GKV) warns that long-term care insurance could run out of money by October, as spending rises nearly three times faster than income and the first half already brought a deficit of 770 million euros.

Long-term care insurance: GKV warns of funding gap by year-end
Photo: img.zeit.de

Germany's statutory health insurance association (GKV) warns that long-term care insurance could run out of money by October, as spending rises nearly three times faster than income and the first half already brought a deficit of 770 million euros.

Oliver Blatt, chairman of the National Association of Statutory Health Insurance Funds (GKV), said: “In October, revenues will no longer be sufficient to fully finance long-term care benefits.” Spending is rising almost three times as fast as income. In the first half of the year alone, the deficit totaled 770 million euros.

For the full year, the association expects a shortfall of 1.2 billion euros – this already includes a federal loan of 3.2 billion euros. Without that help, the “honest result” would be minus 4.4 billion euros, Blatt said. For next year, the GKV anticipates an additional financing need of ten billion euros.

The association cites the rising number of people in need of care, higher spending on short-term and respite care, and growing subsidies for co-payments in full inpatient care as the main cost drivers. The GKV is calling for immediate measures: the federal government should first repay 5.2 billion euros in extraordinary coronavirus-related expenses and, in the future, take over pension contributions for family caregivers – saving around 5.3 billion euros annually.

The black-red coalition is preparing a long-term care reform for the autumn, one of the major projects of Carsten Linnemann (CDU). A draft by Nina Warken (CDU) includes spending brakes and additional revenue to avoid contribution increases next year.

Source: www.zeit.de