Concerns are mounting within Germany’s statutory health insurance system regarding the newly formed government commission tasked with reforming the long-term care insurance program. The primary apprehension centers on whether the commission’s efforts will truly address the system’s substantial financial challenges or merely defer them to the future.
Oliver Blatt, Chairman of the GKV-Spitzenverband (the Association of Statutory Health Insurance Funds), cautioned in remarks to the “Rheinische Post” newspaper that temporary, debt-financed support for the care insurance program – amounting to billions of euros in loans over the next two years – will not resolve the underlying financial issues. He stressed the importance of a genuinely sustainable stabilization of the insurance system.
The commencement of the commission’s work is being viewed positively as a signal of progress for the millions of individuals requiring care and those contributing to the system. Blatt expressed his hope for the commission’s success, stating that it would provide significant relief to both groups. The GKV-Spitzenverband has offered its expertise and cooperation to the commission.
The establishment of the commission sparked prior criticism due to its composition, which primarily consists of politicians and civil servants, with the absence of representatives from care organizations. The commission is coordinated by the Federal Ministry of Health, led by Minister Nina Warken (CDU).
Statistics released by the GKV-Spitzenverband reveal that social care insurance concluded 2024 with a deficit of €1.54 billion. Despite a recent increase of 0.2 percentage points in the contribution rate at the beginning of the year, a deficit of approximately €90 million was already recorded in the first quarter of 2025, with projections of a potential €160 million deficit by year-end. Without significant reform, a deficit in the billions is anticipated for the following year.
According to the current budget draft, the federal government plans to provide the care insurance system with two loans: €0.5 billion in 2025 and a further €1.5 billion in 2026, with repayment scheduled to begin in 2029.
