Social Welfare Groups Critique New Care Reform Bill as "Austerity Measure"
Politics

Social Welfare Groups Critique New Care Reform Bill as “Austerity Measure”

The Sozialverband Deutschland (SoVD) has sharply criticized the recently released draft for the long-term care law, deeming it primarily a “cutback law”. According to SoVD Chairwoman Michaela Engelmeier, while the care insurance system certainly needs reform, and strengthening prevention and rehabilitation is correct, the draft contains numerous measures that negatively impact care recipients.

The association is particularly critical of the planned elimination of the relief amount for individuals with a care level one. “This is not better care; it is a reduction for people who need support” Engelmeier stated. Furthermore, the proposed delay in benefit supplements for residents of nursing homes means that financial relief will take effect later. Higher thresholds in the care assessment process are also expected to make accessing services more difficult.

The SoVD also views potential cuts to pension contributions for family caregivers with severe concern, calling it “a fatal signal to the people who maintain home care every day”. Instead, the association calls for a fundamental structural reform leading to a care insurance system financed based on solidarity, involving all citizens. The SoVD rejects any cuts to benefits.

Meanwhile, the Federation of German Elderly and Disabled Care Organizations (VDAB) sees the draft primarily confirming the strained financial situation of the social care insurance. VDAB Federal Executive Thomas Knieling noted that the planned measures-such as increased burdens on high earners, additional contributions for childless individuals, and delayed benefit improvements-demonstrate the extent of the current financial pressure.

However, the VDAB views the proposed innovation clause positively. This clause would allow care facilities and payers to test new service and organizational models together. They also see stronger openness to digitalization and technical innovations as a positive step, as modern technology could help relieve care staff and make care more efficient.

Despite these positives, the VDAB criticizes the planned suspension of collective bargaining rules. Knieling explained that “in practice, this can pose high risks for companies. The suspension of regulations only exempts the care funds, as the payers, from the obligation to refinance further wage developments”. Yet, care facilities would remain obligated to pass on pay raises if they had committed to them in their employment contracts.

Consequently, Knieling concluded that the draft does not offer a sustainable answer to the question of how rising personnel costs will be fully and promptly financed in the future. He stressed that economic planning certainty is indispensable for both care facilities and outpatient services in order to recruit qualified personnel and ensure widespread care.