German municipalities demand full long-term care insurance coverage as coalition prepares reform
Executive summary: The German municipal association (Städtetag) demanded a full long‑term care insurance (Vollversicherung) model while the governing CDU/SPD coalition prepares to reform the care‑insurance system in autumn; Leipzig’s SPD Oberbürgermeister warned that social welfare offices should not become the regular financiers of care. Shifting financing from social welfare to insurance would affect municipal budgets, state finances and could lead to higher contribution rates for employers and employees, altering the cost structure of the care sector.
Who is involved: German municipalities via the Städtetag, Leipzig SPD Oberbürgermeister, the Schwarz‑Rot (CDU/SPD) federal coalition, and the federal Ministry of Health.
Likely next: Parliamentary debate on care‑insurance reform in autumn 2026, with possible legislative proposals for full coverage and new funding mechanisms to be presented by the coalition.
The Städtetag has called for a complete overhaul of the long-term care insurance system to shift financing away from municipal social offices, warning that otherwise local administrations would become the default payers for care. This comes as the Schwarz‑Rot coalition prepares to tackle care‑insurance reform in the autumn. The move reflects growing concern over the fiscal sustainability of current arrangements and the potential impact on both public budgets and contribution rates.
Timeline
- — Pflegeversicherung: Kommunen fordern eine Vollversicherung (Der Spiegel — Wirtschaft)
Key entities
Sources
- Pflegeversicherung: Kommunen fordern eine Vollversicherung — Der Spiegel — Wirtschaft