According to Carola Reimann, head of the AOK Association, the financial challenges facing social long-term care insurance are now reportedly more severe than those of statutory health insurance. Reimann told the Funke media group that a deficit of approximately eight billion euros is projected for 2027.
She noted that this looming shortfall amounts to over a tenth of the social long-term care insurance’s total annual expenditure of 70 billion euros, making its financial situation even more critical than that of the GKV (statutory health insurance). Furthermore, the 3.2 billion euro loan provided by the federal government this year is expected to be insufficient, as Reimann stated, “We anticipate that the loan will not last until the end of the year.”
Reimann issued a warning regarding potential future contribution hikes unless the funding situation is quickly stabilized. She indicated that continuous increases in contribution rates will be unavoidable if these gaps are not filled, unless alternative actions are taken or supplementary funds are allocated from the federal budget.
As a possible mitigating factor, the AOK chief suggested a financial equalization scheme between social and private long-term care insurance, arguing that private insurance utilization of care services is significantly lower than that of the public system. “Financial equalization could therefore help stabilize the situation in the coming years,” she said, although this proposal has not yet gained agreement within the governing coalition.
She also demanded that the overall social tasks of long-term care insurance be funded through general tax revenue. This includes providing pension contributions for family carers, in addition to ensuring that outstanding COVID-19 aid is repaid.
Reimann welcomed the position of Federal Minister of Health Carsten Linnemann (CDU), who rejected planned cuts to pensions for caring family members. “It is a good sign that the new minister took such a clear position on this issue,” she commented, asserting that cutting these contributions is “absolutely in the wrong place.” She emphasized that 5.7 million people require care, 86 percent of whom are cared for at home-largely by relatives-and therefore reducing their pension contributions is “a completely misguided approach.”
