Financial issues within the long-term care sector appear to be far more severe than previously anticipated. According to the GKV-Spitzenverband (the Association of Statutory Health Insurance Funds), the social care security recorded a deficit of 667 million euros during the first quarter of 2026, despite receiving a loan of 800 million euros.
Oliver Blatt, head of the GKV, predicts that the full year will see a deficit of approximately one billion euros. When factoring in the outstanding debts owed to the federal government, the total deficit could reach 4.2 billion euros. While revenues in long-term care insurance are projected to increase by 7.7 percent in 2026, expenditures are expected to rise by 9.1 percent. Speaking to “Spiegel”, Blatt stated, “The long-term care insurance system is in crisis, and we urgently need to start putting it out”.
The GKV-Spitzenverband reports that the care insurance funds will only total 4.3 billion euros at the end of the year, of which 4.2 billion euros is debt. Blatt remarked that “care in Germany is currently operating on borrowed money”. He stressed that political action is required immediately, warning that the financial problems will become unmanageable next year if nothing changes.
Fearing that the ongoing care reform is stalling, Blatt warned that time is running out because “the funding gap will be immediate at the beginning of next year”. He proposed that the federal government should repay its pandemic-related debts to the care insurance fund, which total 5.2 billion euros. This capital injection could provide immediate stabilization for the care sector.
Furthermore, Blatt suggested that the federal government should cover the pension contributions for caring relatives, while the states should take over the investment costs in nursing homes. Implementing these measures, he claimed, could practically result in an average of 500 euros relief for every nursing home resident overnight, noting that the continuously rising out-of-pocket expenses in these facilities are “no longer acceptable”.
