Germany's long-term care system faces €22.5 billion crisis by 2028

Germany’s long-term care insurance system is under severe strain. After 31 years in operation, it now faces its biggest financial crisis yet. Rising costs and unpaid debts have pushed the system to the brink. The combined deficit for 2027 and 2028 is expected to reach €22.5 billion. This shortfall comes as the insurance system struggles to cover the full cost of long-term care, leaving many with only partial support.

The federal government has failed to reimburse key expenses. Around €10 billion in pension contributions for family caregivers remains unpaid this year. Additionally, €5 billion in COVID-19-related debts to the care insurance fund has yet to be settled.

Meanwhile, state governments have not covered investment costs in nursing homes. If they did, residents could save roughly €500 a month in out-of-pocket expenses.

Health Minister Nina Warken (CDU) has announced plans to address the crisis. A draft law for care reform is set to be presented by mid-May. The financial stability of long-term care insurance hangs in the balance. Without urgent reforms, the system’s ability to provide affordable and reliable support remains at risk. The upcoming draft law will determine how these challenges are met.