Long-term care insurance costs in Germany to increase from July

Karl Lauterbach has announced that the cost of long-term care insurance will increase this summer, a policy update the health minister is defending as unavoidable.

Old age care insurance costs to rise in Germany

Long-term care insurance is funded by obligatory insurance contributions from everyone who works in Germany. From July 2023, the cost of long-term care insurance, which funds the nursing care needed by many in old age, is set to rise by 0,35 percent. From July people without children will have to pay contribute 3,39 percent of their annual salary towards long-term insurance.

Currently, people without children pay 3,4 percent of their annual salary before tax towards funding the insurance. For employees with children, 3,05 percent of their annual salary goes towards long-term care insurance payments. Germany’s constitutional court has also announced that the insurance contribution rate will likely change based on the number of children people have.

Then, from 2024, the amount of money that insurance companies pay out in care subsidies will also change. These subsidies are different for people who receive care in their own homes or are inpatients at a care home. For those receiving care at home, subsidies will increase by 5 percent and for those in care homes relief payments will be increased, though it is not yet certain by how much.

Sozialverband VdK criticises Lauterbach’s policy

Lauterbach’s policy has already garnered criticism from health insurance companies and patient representative groups.

Germany’s Sozialverband VdK, an organisation which represents the sociopolitical needs of the elderly, disabled people and people in care by monitoring changes to the German social security system, has called Lauterbach’s policy change insufficient.

The Sozialverband VdK promoted more support for at-home care in Germany. Speaking to RND President Verena Bentele said, “With current price rises, the 5 percent adaption of subsidy payments doesn’t cut it.”

“Price increases of 30 percent are to be expected because of workers' collective bargaining agreement,” continued Bentele. “5 percent more is a drop in the ocean.”

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