During a debate concerning the funding of long-term care insurance, economist Veronika Grimm is calling for the removal of two specific allowances: the service supplement for institutional care and the relief payment. Speaking to the “Rheinische Post”, Grimm stated that these two provisions-the service supplement for stationary care and the relief amount-should be abolished. Collectively, they account for approximately 15 percent of the Social Care Insurance (SPV) expenditures in 2025.
According to the member of the Economic Expert Council, these benefits need to be “more strongly focused” in order to limit costs. Furthermore, she proposes raising the thresholds used for classifying individuals into care grades, matching the values originally recommended by experts. This adjustment, she argues, would result in fewer people being classified as requiring care and would consequently lower the average care grade.
Looking toward the medium term, Grimm suggests complementing the existing care provision fund with a new “Care Provision Fund II.” This new fund would require individual birth cohorts to contribute supplementary fees. These funds would be invested on a capital-backed basis and would eventually be used to finance the care provisions specifically for those contributing cohorts.
