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Germany’s Long-Term Care Crisis Deepens as Costs Skyrocket and Reforms Stall

Fair wages for care workers clash with unaffordable costs for families. Can a ‘base-and-cap’ model save Germany’s crumbling long-term care system before it’s too late?

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1 min read
The image shows a poster with a flowchart depicting the different types of people who have been...
The image shows a poster with a flowchart depicting the different types of people who have been diagnosed with cancer. The text on the poster reads "Benefits and Services for Low-income Individuals". The flowchart is divided into sections, each representing a different type of health care provider, such as Medicare, Medicaid, and Social Security. Each section is further divided into subsections, with arrows connecting them to indicate the flow of information. The poster also includes a legend at the bottom that explains the meaning of each section.

Head of Diakonie: Care will become unaffordable for more people - Germany’s Long-Term Care Crisis Deepens as Costs Skyrocket and Reforms Stall

The cost of long-term care in Germany is rising sharply, leaving many unable to afford essential support. Hans-Joachim Lenke, head of Diakonie Niedersachsen, has warned that without urgent changes, even more people will struggle to pay for residential or ensure home-based care. Lenke highlighted that higher wages in the care sector are pushing costs up. While fair pay for workers is necessary, the financial burden on care recipients is becoming unsustainable. He proposed a 'base-and-cap' model to limit out-of-pocket expenses, ensuring no one faces unlimited costs. Removing Care Level 1, as some have suggested, would make the situation worse, Lenke argued. This change would disproportionately affect low-income individuals who rely on basic support. Instead, he urged expanding the funding pool for long-term care by including capital gains and rental income in contributions. Without swift action, Lenke warned of potential benefit cuts in the system. He stressed that the current approach is failing and called for clear, sweeping reforms. His comments come as Federal Health Minister Nina Warken oversees the long-term care insurance system, though Lenke’s criticism has not directly targeted her leadership. The warnings point to a growing crisis in long-term care affordability. Lenke’s proposals aim to prevent more people from falling into financial hardship while ensuring fair wages for care workers. The next steps will depend on whether policymakers adopt his suggested reforms.

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