German Employers' Union Proposes Linking Care Insurance Benefits to Life Expectancy

Rainer Dulger, president of the German Federation of Employers' Associations (BDA), has called for a structural reform of Germany’s long‑term care insurance. He proposes an automatic mechanism that would tie the level of care benefits to demographic trends, specifically life expectancy, so that if the number of contributors falls, the benefit level would be moderated. The aim is to keep the contribution rate stable despite the system’s current deficit of billions of euros.

Dulger argues that the reform should focus benefits on those who need intensive, long‑term care and introduce a sustainability clause similar to that used in pension reforms. He also urges that non‑insurance benefits not be financed from tax money, emphasizing that any increase in contributions should be avoided.