Germany's Care Reform Raises Contributions and Threatens Parent Support Threshold

Federal Health Minister Nina Warken has presented a draft reform of Germany’s long‑term‑care insurance that combines higher contribution rates, a contribution ceiling lift, and new inflation‑linked benefit adjustments. The plan aims to curtail a projected multi‑billion‑euro deficit in the care funds but would raise the financial burden on many insured, especially childless contributors and higher‑income earners.

A separate legislative discussion concerns the 100,000‑euro income threshold that currently shields children of care‑dependent parents from repayment claims under the parent‑maintenance rule. New proposals seek to lower or remove that protection, prompting debate over inter‑generational equity.

Economist and government adviser Achim Truger has criticised the draft as a “cut‑hammer”, noting that the projected savings rely heavily on cuts to benefits and increased out‑of‑pocket payments for nursing‑home residents, while contributions for employers and the federal budget remain largely untouched. The reform also includes measures such as a modest increase in the child‑less surcharge, tighter eligibility for new care grades, and a suspension of tariff binding for care facilities, all of which have drawn criticism from unions and social‑policy groups.