Monika Schnitzer, head of the Council of Economic Experts for the federal government, maintains that immediate federal payments to the care insurance system should be viewed alongside unavoidable service reductions. She noted that while the federal government could temporarily mitigate the projected rise in contribution rates starting in 2027 by covering the approximately six billion euros in unreimbursed pandemic-related overspending, such an injection would simply create a deficit elsewhere in the federal budget.
According to Schnitzer, resorting to cuts in private care insurance or alterations to civil servant pensions would not offer a quick fix. Instead, these measures necessitate a complete systemic overhaul that, in the best case, would only take effect in the medium term.
She strongly criticized the proposal to implement a flat cap on co-payments for long-term inpatient care, arguing that such a blanket restriction is inherently unfair. Not everyone relies on this kind of support, yet the resulting additional costs would ultimately be spread across all contributors, including low-income earners. Schnitzer suggested that targeted support should be provided specifically to those in need.
Furthermore, she stressed that structural reforms must lead to reductions in services. According to the chief economic advisor, the care insurance system faces a structural financing problem: expenditures are rising faster than the income subject to contributions. This pressure is set to increase due to demographic aging. Schnitzer attributed the massive cost increase since 2017 primarily to the extensive expansion of services mandated by the Second Care Strengthening Act. Consequently, she argued that restricting access to services to levels recommended by experts is unavoidable. She concluded by stating that narrowly targeted benefits, such as the extra payment for inpatient care or the relief payment, should be reviewed or eliminated.
