Impending insolvency: infusion of billions into long-term care insurance

Status: 09/24/2021 3:42 p.m.

During the pandemic, the long-term care insurance fund became increasingly empty. The posts couldn’t fill the hole. Therefore, there is now a threat of insolvency. The federal government should now transfer one billion euros within days.

The long-term care insurance is short of cash – the reason is “unforeseen pandemic-related additional expenses”. According to a letter from the Ministry of Finance to the Bundestag’s budget committee, these could not be offset within the framework of the contributions by the end of the year.

Therefore, the federal government must now help out, it should give the long-term care insurance a short-term financial injection of one billion euros. First the news portal “ThePioneer” and the “Bild” newspaper reported about it.

Keep the contribution rate constant

By transferring the money, “an otherwise impending insolvency will be avoided” and the contribution rate will be kept constant this year, according to the letter that is available to the dpa news agency. The payment date should be October 5th.

The subsidy is based on a legal basis provided for such a case, said the health department. Minister Jens Spahn (CDU) signed a corresponding ordinance to additionally stabilize long-term care insurance in the pandemic. The grant has already been agreed in the federal government, the budget committee still has to agree.

Regular federal grant

The German Foundation for Patient Protection requested a regular federal grant. “Paying the long-term care insurance solely through membership fees must come to an end immediately,” said board member Eugen Brysch of the dpa. “After all, all other social security funds will be supported by additional tax revenue.” This solidarity-based financing is missing in the care of the elderly. Legal measures to combat the pandemic immediately plundered the financial reserves of the long-term care insurance funds.

The coalition’s long-term care reform adopted in June provides for, among other things, an annual tax subsidy of one billion euros from 2022. The background is relief for home residents with their own contributions for care and new rules with the aim of better pay for care workers.

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