Germany's long-term care insurance funds are depleting, prompting urgent government action to curb costs
Executive summary: German authorities reported that the Pflegeversicherung funds are running out of money and are attempting to bring costs under control. Insolvency risks in the long-term care insurance scheme could lead to higher contributions, reduced benefits, or increased public subsidies, affecting households and the broader healthcare sector.
Who is involved: German federal government, Pflegeversicherung funds, health insurers, and care service providers.
Likely next: Presentation of a reform package to Parliament, potential adjustment of contribution rates, and debate over cost‑containment measures.
The German federal government is struggling to keep long-term care (Pflegeversicherung) expenditures under control as the scheme's reserves run low. Recent data for the first half of 2026 show the financial pressure mounting, adding urgency to planned reforms aimed at stabilizing the system.
Timeline
- — Pflegeversicherung: Den Kassen geht das Geld aus (Der Spiegel — Wirtschaft)
Analysis — what this means
Sectors affected
- long-term care insurance
- healthcare
Key entities
Sources
- Pflegeversicherung: Den Kassen geht das Geld aus — Der Spiegel — Wirtschaft