Andreas Storm, CEO of the DAK health insurance provider, is publicly calling on Health Minister Nina Warken (CDU) to reconsider her proposed care reform. Speaking to the “Tagesspiegel”, Storm demanded that the federal government immediately halt what he calls a “clear-cut” in care policy and instead initiate a fresh approach to reforming the system.
The urgency stems from the fact that, without structural changes, the social care insurance is projected to face a deficit exceeding 22 billion euros within the next two years. In response, Warken plans to present a savings package by mid-May. However, specific details of her model have already leaked, suggesting plans to reduce subsidies provided for residential care. Last week, the Minister told the “Rheinische Post” that one means of achieving savings could be “stretching the granting of subsidies”.
The potential financial impact has been calculated by care expert Heinz Rothgang of the University of Bremen. According to his analysis, the increased self-contribution burden for residents would rise by an average of 161 euros per month. Over a period of four and a half years, this increase translates to nearly 20,000 euros in extra costs for residents.
Currently, residents must pay an average self-contribution of 3,200 euros monthly. While the care insurance provides subsidies that increase with the duration of institutional care-starting at 15% reimbursement in the first year, moving up to 30% in the second, 50% in the third, and reaching 70% from the fourth year-a report from the RND detailed a different scenario. This report suggests the Ministry will delay these crucial increases: the first increase only after 18 months, the second only after three years, and the maximum 70% funding only after 4.5 years-a timeline upon which Rothgang based his unfavorable calculation.
Adding to his critique, Storm anticipates that Warken may also seek to halve the pension entitlements of family caregivers. He warned that such measures would exacerbate the “risk of poverty due to care” concluding that these proposed changes would not solve the existing care crisis, but would instead make it dramatically worse.
