A potential adjustment to Germany’s statutory care insurance system is under discussion within the governing coalition, prompted by an anticipated funding shortfall of approximately two billion euros by 2026. Specifically, the prospect of eliminating care level 1 is being considered as a measure to stabilize the system’s financial standing.
Reports indicate that the possibility of removing care level 1 has surfaced in coalition negotiations previously, including discussions between the conservative Union and the Social Democratic Party (SPD). As of the end of 2024, roughly 863,000 individuals were classified under care level 1, qualifying for a monthly relief payment of 131 euros, alongside subsidies for home modifications and emergency alert systems.
An analysis by the RWI Leibniz Institute for Economic Research estimates that eliminating care level 1 could generate annual savings of approximately 1.8 billion euros.
The Federal Ministry of Health, responding to inquiries, highlighted the ongoing work of the joint federal-state working group tasked with care reform. This group is currently evaluating the income and expenditures of the social care insurance system, including the structure and scope of care levels. Officials emphasized that premature conclusions regarding the group’s outcomes are inappropriate. A preliminary report is expected by mid-October.
The Deputy Parliamentary Group Chairman of the Union, Sepp Müller (CDU), stated that reducing ancillary wage costs is a priority for safeguarding jobs and prosperity, necessitating a thorough examination of all available options.
