Cabinet gives green light for nursing care reform after long struggle

After a long struggle between the Union and the SPD, the federal government has given the green light for the planned care reform. The cabinet approved Health Minister Carsten Linnemann's (CDU) draft law to reorganize long-term care insurance, as the news agencies dpa and Reuters reported, citing government circles.

Until recently, it remained unclear whether the Union and the SPD had reached such an agreement in long negotiations that the reform could be discussed in the ministerial group. What exactly an agreement would entail was initially unclear.

Linnemann wants to achieve savings in several areas, as statutory nursing care insurance is threatened with a billion-dollar deficit this year. After his announcement that he wanted to bring his draft to the cabinet this Wednesday, the SPD threatened to block it. She rejected “a pure austerity package”. The negotiations dragged on until Wednesday morning. According to a dpa reporter, Linnemann joined the cabinet meeting a little late.

Above all, the planned law is intended to prevent increasing contributions. After an increase last year, the contribution rate is 3.6 percent, and for those without children it is 4.2 percent of the income subject to contributions.

The SPD wants to send a signal of justice, especially after the state elections, which were partly devastating for the coalition partners, as it was said. Both sides negotiated for a long time about a possible compromise. Despite great pressure to act, a later cabinet discussion in the coalition was not ruled out because there was initially no significant progress in the negotiations.

Linnemann's plans, based on a draft by his predecessor, Chancellor Nina Warken (CDU), envisaged, among other things, extending supplements for residents of nursing homes over time. The money is intended to cushion the ever-increasing personal contributions. A part would then be saved here. The proposed savings measures also included a stricter classification of care levels. Warken also had restrictions on free co-insurance for spouses.

The SPD insisted on “distributing the financing responsibility more fairly.” This should be done primarily through a contribution from privately insured people. At least the Social Democrats wanted to achieve a “financial balance” between private and social care insurance. The SPD also called for a limit on the increasing personal contributions that those in need of care and their relatives have to pay for care in a home (care cap).

SPD Finance Minister Lars Klingbeil reiterated on Tuesday afternoon in Mainz: “This cannot be just a savings package, but we also need structural changes.” Linnemann had asked Klingbeil to clear the way for the repayment of more than five billion euros in Corona aid to the nursing care insurance. In the struggle for a balanced federal budget, the finance minister had demanded savings contributions from all ministries.