Germany's Nursing Care Crisis Deepens as Austerity Plan Sparks Outrage

Health Minister Nina Warken is set to unveil an austerity package for nursing care by mid-May. The proposals aim to tackle Germany’s growing long-term care funding crisis. But critics, including the head of health insurer DAK, have already raised concerns over the potential impact on residents and caregivers. The current long-term care insurance system faces a €22 billion shortfall over the next two years if no action is taken. Warken’s plan seeks to address this by cutting subsidies for residential care and delaying their disbursement. Under the proposals, the maximum state coverage would be capped at 70% after four and a half years.

Care home residents currently pay an average of €3,200 per month out of their own pockets. If the reforms go ahead, these costs could rise by €161 each month, according to calculations by health economist Heinz Rothgang. Over the same period, residents would end up paying nearly €20,000 more in total.

Andreas Storm, chief executive of DAK-Gesundheit, has urged the government to scrap the current reform entirely. He warned that Warken’s plans would halve pension entitlements for family caregivers, adding further financial strain. Storm called for a complete restart of the reform process to avoid what he described as unfair burdens on those in need of care. Warken’s austerity measures aim to stabilise the long-term care system and prevent a €22 billion deficit. However, the proposed cuts and delays in subsidies would increase monthly costs for care home residents. The reforms also risk reducing financial support for family caregivers, drawing strong opposition from health insurance leaders.