Cost of German care insurance could rise in July

To combat the steep cost of care, the German Health Ministry is planning to increase monthly contributions to the care insurance fund, according to media reports.

According to a draft law seen by DPA and reported on by other media outlets on Friday, contributions could increase by 0.35 percent as of July 1st, 2023.

On the other hand, those receiving care would get more financial aid from the state. 

Specifically, the draft outlines plans to increase the care allowance for people in nursing homes from January 1st, 2024 and also hike relief for people receiving care at home.

Health Minister Karl Lauterbach (SPD) had previously indicated that higher long-term care contributions would be necessary to fill a gaping deficit in the care system.

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In 2022 - despite minor increases in care contributions at the start of the year - there was a €2.25 billion black hole in the statutory insurance funds.

On Friday, statutory health and care insurance funds and social pressure groups wrote to the government to demand more tax revenues for care.

In a letter to Chancellor Olaf Scholz (SPD) and Finance Minister Christian Lindner (FDP), the insurance funds claimed they would require €4.5 billion from the state simply to stabilise their finances in 2023.

"We therefore urge you to quickly stabilise the financing of the social long-term care insurance through federal funds, so that the necessary securing of liquidity is not exclusively at the expense of those paying contributions," they wrote.