Warken Welcomes Increase in Loans for Nursing Care Insurance - Germany’s €3.2B Loan Patch Averts Care Insurance Crisis—For Now
Germany's Health Minister Nina Warken has stressed the urgency for comprehensive and sustainable reforms in long-term care insurance by 2026. This call comes as the Budget Committee approves a €1.7 billion loan increase, bringing the total to €3.2 billion, to prevent a rise in contributions due to a projected €2 billion deficit.
The AOK Federal Association has welcomed the loan increase, stating it avoids a short-term hike in contributions. However, they caution that it is only a temporary solution. The SPD has acknowledged the need for structural reform to ensure long-term stability of the system. Meanwhile, the Green Party has criticized the loan decision, arguing it is not a sustainable solution and merely kicks the can down the road.
A working group is currently addressing the future of long-term care and is expected to present final recommendations for a fundamental reform in December.
The loan increase is a stopgap measure to prevent a rise in contributions in 2026. However, all parties agree that a comprehensive and sustainable reform is necessary for the long-term stability of the system. The final recommendations from the working group, expected in December, will be crucial in shaping this reform.
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