The German Association of Cities (Deutsche Städtetag) is advocating for the introduction of comprehensive long-term care insurance amid ongoing discussions about a necessary care reform. According to Burkhard Jung, the President of the Association, a shift to such a system would prevent individuals who have worked diligently throughout their lives from falling into reliance on social welfare simply because of care costs. He told the “Neue Osnabrücker Zeitung” (Friday edition) that implementing this change would provide a relief of billions of euros to municipal budgets annually.
The association is also pushing for measures to limit the financial burden on residents in care homes. Jung proposed establishing a cap on co-payments, designing this threshold to be higher or lower depending on income. He suggested modeling this approach on the idea put forward by Saarland Minister-President Anke Rehlinger (SPD), where the public funds cover co-payments exceeding 1,500 euros. He stressed that the federal government, states, and municipalities would need to jointly finance this cap.
This push stems from the growing financial strain faced by cities and communities. Jung pointed out that with annual deficits reaching 30 billion euros, local governments are reaching a breaking point. However, municipalities are currently forced to step into the breach when senior citizens can no longer cover the costs of institutional care themselves.
The escalating costs are particularly evident in Leipzig, where Jung is the mayor; within five years, the costs for “care assistance” there increased by 300 percent. Across eastern Germany, fewer and fewer people are able to afford their required personal contributions. Jung cautioned strongly against the possibility of the social welfare office becoming the standard funding source for care.
Against the backdrop of an estimated shortfall of 22.5 billion euros facing care funds over the next two years, the government aims to pass a comprehensive care reform by 2026.
