The Federal Health Minister, Carsten Linnemann (CDU), has rejected the Social Democratic Party’s (SPD) proposal for a specific cap on care costs. Linnemann argued that the projected savings from the SPD’s plan are negligible. He calculated that reducing costs by 300 euros would not fundamentally address the problem, given that the individual’s out-of-pocket expenses for institutional care would likely still fall between 3,000 and 4,000 euros, regardless of where in Germany they receive care. Therefore, instead of implementing a quick fix, he advocated for establishing a commission. This commission, he stated, should provide immediate “first aid” relief to people in need of care while simultaneously ensuring stable contributions for the system. Linnemann added that in a second phase, he plans to establish a commission by the end of October to structurally modernize the long-term care insurance system for the coming decades.
The dispute intensified after the SPD signaled on Friday that they intend to renegotiate the care reform, insisting they would not support any reform that included benefit cuts for patients. Addressing the issue of reductions, the Minister stated that no one wants to cut services. He preferred to simply increase funding, noting that while cuts are possible, the state had effectively already intervened in the care fund. He highlighted that during the COVID-19 pandemic, the care insurance borrowed five billion euros from the state for legitimate reasons, with the understanding that this money would eventually be returned. If the government manages to recoup these pandemic funds-for example, from the Finance Ministry-they would possess more financial flexibility than they currently have.
Regarding the political conflict with the SPD, which may seek to block the care reform in the cabinet on Wednesday, Linnemann commented that such maneuvering is not unusual. He cited the previous healthcare reform, where consensus was reached just two hours before a cabinet meeting. Nevertheless, he acknowledged that high-level agreements should ideally be made behind closed doors rather than publicly debated.
Separately, Jens Baas, CEO of the Techniker Krankenkasse, voiced concern that the government’s planned savings package is still insufficient to stabilize contributions to public health insurance. Minister Linnemann responded to this by saying he cannot guarantee stabilization but is working tirelessly toward it. He mentioned that they will pass another package saving 600 to 700 million euros, which is part of the contribution stabilization law agreed upon earlier. This package addresses the needs of hospitals, providing them with 495 or 550 million euros.
