Embracing the Need for Long-Term Care Insurance Overhaul: Minister Klose's Perspective
In line with the shifting sands of societal demographics, Hesse's Minister of Social Affairs, Kai Klose (Greens), advocates for some significant reforms to long-term care insurance financing at the federal level. The federal government's intervention is crucial to moderate the upcoming surge in care costs, as asserted by Minister Klose in response to a parliamentary question posed by SPD member of state parliament Daniela Sommer.
Since inception in 1995, long-term care insurance has operated as partial insurance, offering fixed benefit amounts based on the degree of care provision. As per the ministry, these benefit amounts were neither periodically revised in the past nor sufficiently updated to keep pace with general inflation. Consequently, inpatient care co-payments escalated sharply, while outpatient care service hours dwindled.
Championing the cause of seniors, the Hesse government calls for the enhancement of outpatient care sector benefits and their permanent link to inflation adjustments, Minster Klose clarified. It's evident that the looming struggle between benefit recipients and contributors will persist, with individuals requiring care expected to continue shouldering their care expenditures within their financial capabilities.
Minister Klose advocates for a sweeping transformation of long-term care insurance by the federal government to handle the burgeoning expenses spurred by demographic change. To foster a more equitable distribution, he urges the administration to reconsider the current, inflation-inexpressive benefit amounts of long-term care insurance, which have caused a spike in co-payments and reduced benefit coverage hours for care services.
Enrichment Insights:
- As part of the proposed reforms, the federal government has also announced plans to increase the contribution rate for long-term care insurance from its existing 3.4% to 3.6% in 2025[1]. However, Kai Klose didn't publicly advocate for this increase.
- The increase in contribution rates is part of larger changes to social security contributions in Germany, targeting the escalating care costs due to demographic change[1][4].
