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Long-term care insurance faces a deepening financial crisis
🇩🇪 Germany /Economy & Trade

Long-term care insurance faces a deepening financial crisis

From Der Spiegel · () German

Translated from German and summarized by DistantNews. Read the original for the full story.

At a glance

Explainer Named sources Ongoing story
  • Germany’s statutory long-term care insurance system expects a shortfall of about 500 million euros by the end of 2026 and a 10 billion euro gap next year.
  • Spending rose 11% year on year to 39.5 billion euros in the first half, while contribution revenue increased 3.9%.
  • The funds are pressing for emergency federal support and rapid reform, but say care recipients do not need to fear an interruption in payments.

Germany’s long-term care insurance system is warning of a widening financial hole, even as it tells people receiving care that their benefits remain secure.

Care is acutely in trouble.

— Oliver BlattThe head of the GKV umbrella association described the system’s financial condition.

Oliver Blatt, head of the relevant GKV umbrella association, said the system was “acutely in trouble.” The funds estimate that they will lack 500 million euros by the end of the year, followed by a gap of 10 billion euros next year. Blatt called for a short-term injection of federal money and rapid action on the planned care reform.

The statutory system covers nearly 75 million people, while about six million received benefits in 2025. The financial pressure could eventually affect contributors, taxpayers and people who need care. Blatt said revenues would no longer be enough to fully finance care benefits in October, but added that “long-term care insurance cannot go bankrupt.” Mechanisms would cover the shortfall, with the federal government expected to provide emergency liquidity if necessary.

Long-term care insurance cannot go bankrupt.

— Oliver BlattHe sought to reassure people receiving benefits that payments would continue.

The imbalance has grown because spending is rising much faster than income. Expenditure increased 11% in the first half of the year to 39.5 billion euros compared with the same period in 2025. Contribution revenue rose by only 3.9%. The system recorded a 770 million euro deficit in the first six months, which the association expects to reach 1.2 billion euros by year-end.

If spending rises almost three times faster than income, the seriousness is obvious.

— Oliver BlattHe explained the widening gap between expenditure and contribution revenue.

The federal government has already supported the funds with a 3.2 billion euro loan this year. Including that assistance, the association calculates an “honest result” of a 4.4 billion euro deficit. The main cost driver is the growing number of people receiving benefits, which increased by about 370,000 in 2025 and has roughly doubled from three million to six million since 2017. The association attributed the rise both to an ageing population and to broader eligibility rules.

honest result

— GKV-SpitzenverbandThe association used this phrase for its calculated 4.4 billion euro deficit after accounting for federal lending.
About this summary

Originally published by Der Spiegel in German. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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