Majority Supports Comprehensive, Solidarity-Based Long-Term Care Insurance in Germany

A recent survey indicates that a significant majority of the German population supports the introduction of a comprehensive long-term care insurance system, designed to cover all care-related costs. This proposed model, often referred to as a 'solidarity-based full care insurance,' aims to prevent individuals in need of long-term care from falling into poverty due to high personal financial burdens.

The survey, commissioned by an alliance of social organizations and trade unions, found that approximately 65 percent of respondents favor a complete care insurance scheme. This model would shift the responsibility for care expenses from individuals to a collective insurance structure. Support for the initiative is especially pronounced in eastern regions of the country, where lower average incomes and pension levels make residents more dependent on reliable assistance in the event of care dependency.

In contrast, a mandatory private supplementary insurance plan received support from only 18 percent of those surveyed. The poll, conducted by research institute Forsa, reflects growing public concern about the financial risks associated with long-term care, particularly as current systems leave many individuals vulnerable to significant out-of-pocket costs.

Currently, individuals requiring residential care are responsible for substantial personal contributions. On average, care home residents must pay around 3,100 euros monthly during the first year, with roughly 1,600 euros allocated to care services and the remainder covering accommodation, meals, and facility-related investments. These high costs mean that more than one-third of care home residents now rely on social welfare assistance, a figure that continues to rise.

Advocates for the new insurance framework highlight the urgent need to relieve the financial pressure on those needing care and their families. Analysis commissioned by the alliance suggests that a fully inclusive public insurance model, which would encompass the entire population, is both feasible and financially sustainable. One proposed adjustment involves raising the contribution assessment ceiling, enabling higher-income earners to contribute more significantly, which could ultimately reduce the overall contribution rate for all participants.

Leaders of various social and labor organizations argue that immediate reforms are necessary to cap the personal contributions required from care recipients. They contend that the risk of poverty among those in need of long-term care remains unacceptably high, and that bridging loans or additional private insurance options are insufficient to address the issue.

Policy recommendations from the alliance include the establishment of a universal citizen care insurance, with increased contributions from high-income groups, and a restructuring of the financial model to ensure consistent support for all individuals, regardless of income or region. The alliance has also called on political parties to prioritize reforms that would expand the scope of the statutory care insurance, ensuring that all care-related expenses are covered and that the system remains equitable and accessible.

As the demographic shift towards an aging population continues, the debate over the future of long-term care financing in Germany is intensifying. The findings of this survey and the supporting economic analysis are expected to influence policymakers as they consider options to make the long-term care system more robust, sustainable, and fair for current and future generations.