German municipal association demands overhaul of long-term care insurance to full coverage, signalling potential fiscal shifts
Executive summary: The Städtetag called for the federal government to reform the statutory long-term care insurance into a full-coverage system during the planned autumn reforms. Such a shift would increase public expenditure on long‑term care, alter contribution rates, and reduce the market for private supplemental long‑term care policies.
Who is involved: German Federal Ministry of Health, the Städtetag (Association of German Cities), statutory long‑term care insurers, private supplemental insurers, municipalities, and taxpayers.
Likely next: The government will debate the proposal in autumn; stakeholder consultations and possible legislative drafts are expected before year‑end.
The Städtetag, representing German cities, has urged the federal government to transform the statutory long-term care insurance into a full-coverage model as part of the upcoming autumn reform package. The proposal aims to eliminate gaps in coverage and reduce reliance on private supplemental policies. If adopted, the change would raise public spending on long-term care and could affect contribution rates for workers and employers. The call reflects ongoing debates over the sustainability of Germany’s aging‑related care financing.
Timeline
- — Kommunen: Pflegereform: Städtetag fordert Umbau zur Vollversicherung (Handelsblatt)
Analysis — what this means
Sectors affected
- Long‑term care insurance
- Public health financing
- Private supplemental long‑term care insurance
Historical parallels
- 2015 Pflegestärkungsgesetz II introduced graduated care levels
- 2021 Pflegeversicherung reform raised contribution rate from 3.05% to 3.4%