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Germany proposes major long-term care insurance reform

Updated 4 times since CLSTR started tracking revisions of this situation.

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2026-10-05 04:36 UTC → 2026-10-05 19:43 UTC · added removed

The German government has proposed a major reform of the statutory long-term care insurance system via the Pflegeneuordnungsgesetz (PNOG) to address a projected deficit. While earlier estimates suggested an eight-billion-euro deficit by 2027. Key components 2027, the Federal Cabinet’s approved draft indicates the shortfall could reach approximately 7.6 billion euros in 2027 and potentially exceed 15 billion euros by 2028. A central component of the reform include is the replacement of the current care allowance (Pflegegeld) with a new relief budget (Entlastungsbudget) effective January 1, 2027. This budget is designed to cover cash payments, care aids, and replacement care services. The reform also includes stricter criteria for determining care levels 1 through 3, with a transition deadline 3 and the planned abolition of December 31, 2026. Applications the 131-euro monthly relief amount for care level 1. To manage the transition, applications submitted before this date the December 31, 2026, deadline will be evaluated under current, more lenient regulations. Proposed changes include the abolition of To accommodate a surge in applications, the 131-euro monthly relief amount for care level 1 and law includes provisions to extend standard processing deadlines during the restructuring first four months of budgets into specific categories, such as relief, social space, and bridging budgets. 2027. For those newly classified with care levels 2 or 3, a the proposed “relief budget” (Entlastungsbudget) relief budget would be halved for the first three months of eligibility. To fund these measures, Financing the government plans to increase measures involves increasing contributions for childless individuals by 0.3 percentage points and raise points, raising the contribution assessment ceiling by 3,600 euros. Additionally, spouses or partners will face euros, and applying a 0.52 percent surcharge for certain spouses or partners. The general contribution surcharge. Social associations have criticized the plan, warning that restructuring could lead rate is intended to a loss of reliable relief for caregivers. Separately, the Federal Social Court (Bundessozialgericht) ruled that individuals receiving care allowance may retain these payments even if neighbors provide assistance, though reimbursement for relief amounts may be denied if the private help remain at 3.6 percent. The reform is not officially recognized. currently in the parliamentary process.

Versions

  1. 2026-10-05 19:43 UTC Germany proposes major long-term care insurance reform
  2. 2026-10-05 04:36 UTC Germany proposes major long-term care insurance reform
  3. 2026-10-04 10:20 UTC Germany announces major long-term care insurance reform
  4. 2026-10-04 03:38 UTC German long-term care insurance and assessment
  5. 2026-09-16 18:07 UTC German long-term care insurance and assessment

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