SPD calls for 'care cap' to relieve nursing home costs

Those in need of care pay an average of 3,364 euros per month for a place in a nursing home. This includes, among other things, costs for accommodation, food, investments and the training of nursing staff. A large part goes to the care itself, namely an average of 1,775 euros per month.

It is precisely this care share, the so-called facility-wide own share, or EEE for short, that the SPD is targeting with its proposal for a “care cap”. The personal contribution should initially be limited to a maximum of 1,500 euros per month. According to the current average values, this would mean a relief of around 275 euros per month for the first year of stay. Accommodation, meals and investment costs would not be covered by this cap.

How has the personal contribution been limited so far?

Nursing care insurance already contributes to the care-related personal contribution. The subsidy increases with the length of stay in the nursing home.

In the first year, the nursing care insurance fund covers 15 percent of the care-related contribution, in the second year 30 percent, in the third year 50 percent and from the fourth year 75 percent. As a result, the proportion of care costs borne by those in need of care themselves decreases as the length of stay increases. The current vdek figures for July 2026 clearly show this effect: after the subsidy, the care-related personal contribution is an average of 1,775 euros in the first year and 522 euros after more than three years.

What should change with the nursing reform?

The draft bill for the Care Reorganization Act, which the then Health Minister Nina Warken presented in June, envisages extending the levels for these subsidies. The higher subsidies should take effect six months later than before.

This would extend the current staggering of twelve months per level to 18 months each.

However, the draft is not yet final. The current Minister of Health, Carsten Linnemann, says he has basically taken it over from his predecessor. However, changes to individual points are possible; negotiations within the coalition are still ongoing.

What does the SPD demand?

The SPD wants to place greater limits on its own contributions. In a first step, your concept provides for a cap of 1,500 euros for the care-related personal contribution.

In a second step, the nursing care insurance subsidy should also be applied to this already capped amount. As a result, the personal contribution for care would fall below 1,500 euros. The SPD is estimating around one billion euros for the first step and around three billion euros for the second. In total, this amounts to around four billion euros.

How will this be financed?

The SPD proposes several options for counter-financing. These include a higher contribution burden for people with higher incomes or an increase in the contribution assessment limit, greater participation by private nursing care insurance and a higher financing contribution from the federal budget.

The Union has so far rejected the “care cap” demanded by the SPD. Linnemann argues that limiting the care-related personal contribution alone does not fundamentally solve the financial burden on those in need of care because additional costs for the home would be added.

This means that the “care cap” is now a central point of contention in the planned care reform. It is still unclear which changes to the draft bill will actually be decided in the cabinet and then in the Bundestag.