Federal Health Minister Carsten Linnemann (CDU) has addressed the critical financial situation facing long-term care insurance, suggesting that potential reductions in services may be necessary to achieve stability. Speaking to the “Handelsblatt”, Linnemann stated, “We must save around ten percent.” He cautioned that while these efforts are needed, he “cannot guarantee that there will not be reductions in certain areas of benefits.”
The long-term care insurance system faces a fundamental funding challenge, driven by demographic changes. The number of individuals requiring care has climbed from two million to over six million in the last two decades. Without significant structural reforms, the system was projected to accrue a deficit of approximately eight billion euros by 2027.
To address this, the Minister announced intentions to increase taxation specifically related to care services, ensuring that aid is provided more precisely to those who truly need it.
Regarding statutory health insurance costs, Linnemann stated strongly that he would not increase co-payments (Zuzahlungen) for citizens in 2027, despite the current pressures. He stressed that future increases in co-payments would not be the viable mechanism for containing the costs of statutory healthcare in the long term.
As for the timeline for further austerity measures, the Minister left the possibility open. For now, he plans to wait for the recommendations put forward by the Health Financial Commission. His ultimate objective is to ensure stable health insurance contributions well beyond 2027, with a medium-term goal of allowing contributions to even decrease.
