SPD and VdK Reject CDU Proposal to Use Home Ownership for Care Financing

Sharp Rejection from SPD and Social Welfare Groups

SPD care policy spokesman Pantazis also rejected the idea. "Abzulehnen sei der Vorstoß jedoch 'in beiden Fällen'," he said. He warned that anyone demanding that self-used residential property or private savings be drawn on more heavily for care financing must honestly tell people what that concretely means.

Pantazis stressed that for many families, the family home is not a luxury reserve. "Für viele Familien sei das Eigenheim keine Luxusreserve, 'sondern Ergebnis jahrzehntelanger Arbeit und ein zentraler Bestandteil ihrer Altersvorsorge'," he said.

The debate comes as Germany's long-term care insurance system faces severe financial strain. As of the article's date, 6.1 million German citizens receive benefits from the long-term care insurance, more than double the number in 2015. Since 2015, the contribution rate has been raised five times and now stands at 3.6 percent of gross income.

Financial Crisis in the Care Insurance System

Health Minister Nina Warken (CDU) has warned that the care insurance deficit could exceed 7.5 billion euros in 2027 and more than 15 billion euros in 2028. A ministry spokesperson said the reform concept has been delayed because some detailed questions remain open, and no timeline was given.

The so-called economic wise men had advocated in their spring report for drawing more on personal assets for care financing. They also proposed raising the thresholds for classification into the five care grades, a move previously suggested by Health Minister Warken, the federal-state working group on care, and health insurers.

Social welfare associations are demanding that the Federal Finance Minister close the six-billion-euro hole that coronavirus aid measures tore into the care insurance from the federal budget. They also accuse the federal states of failing to meet their statutory responsibility for investments in care infrastructure.

Nursing-home residents currently pay an average of around 3,245 euros out of pocket nationwide. The Medical Service of the Federation recently called for a modernization of care so that the situation of those in need of care stabilizes or improves, or that the need for care does not arise in the first place.

Reform Proposals and Political Debate

Media reported on Tuesday that Warken plans to increase the surcharge for childless individuals by 0.1 percentage points to 0.7 percent. The minister has also indicated she is considering making high earners contribute more, possibly by raising the income threshold for contributions.

According to media reports, the government is discussing whether the staggered subsidies for nursing-home residents to reduce personal contributions could grow more slowly than before. A proposal under discussion would also halve the pension points for family caregivers, for whom the care insurance has paid mandatory contributions to the statutory pension insurance under certain conditions since 2017.

Pantazis emphasized the need for reliability and security. "Die Menschen erwarten zu Recht Verlässlichkeit und Sicherheit, wenn sie im Alter auf Pflege angewiesen sind – und nicht die Sorge, ihr Zuhause oder ihre Lebensleistung zu verlieren," he said.