Elderly care is becoming more and more expensive due to longer care periods

According to a study, nursing care insurance is also threatened with cost increases due to longer periods of care. In the coming years, the average length of time during which those in need of care are cared for and receive services is likely to almost double, according to an analysis by Barmer health insurance company presented in Berlin. According to this, it was an average of 3.9 years for recently deceased people in need of care. For people currently in need of care, it is likely to extend to an average of 7.5 years.

The background to this is the introduction of a new definition of need for care in 2017, which meant that more people were entitled to care services. “This significantly extended the duration of care and significantly increased the costs,” said study author Heinz Rothgang from the University of Bremen. Recently deceased people in need of care claimed benefits worth an average of 50,000 euros. For those currently in need of care, however, it is likely to be around 76,000 euros. Possible further price increases are not yet taken into account in this calculation based on costs from 2023.

Because of the increasing number of people in need of care and generally rising costs, a fundamental reform of financing is being discussed. After the traffic light coalition broke up, Health Minister Karl Lauterbach (SPD) can no longer implement this as planned. Barmer boss Christoph Straub said that politicians face a mammoth task that must be tackled after the federal election at the latest. For now, the federal government has initiated an increase in the nursing care contribution by 0.2 percentage points as of January 1, 2025, in order to ensure the solvency of nursing care insurance.

The board of the German Foundation for Patient Protection, Eugen Brysch, criticized: “While Karl Lauterbach pushed forward on many of his issues, the department head had no answers when it came to the future security of long-term care insurance. This is now taking revenge with the traffic lights being turned off.” Simply increasing care contributions is pure patchwork. Sustainable and generation-appropriate financing is necessary. This requires a fixed, predictable personal contribution and solid counter-financing through tax revenue.

Rising personnel expenses are also a cost factor. Since September 2022, care insurance contracts have only been allowed to exist with homes that pay according to the tariff or similar. Since then, the wage level has risen significantly, according to the Barmer nursing report. Full-time skilled workers in geriatric care now earn better than the average of all full-time employees, said study author Rothgang. These wage increases are necessary to increase the attractiveness of the profession and thus counteract the shortage of nursing staff – but they have an impact on home fees that you have to pay yourself.

The background is that nursing care insurance – unlike health insurance – only covers part of the costs for pure nursing care. The additional payments out of pocket for this have been increasing for years. For home residents there are also increasing costs for accommodation, meals and investments in the facilities. In order to reduce the additional burden on those in need of care, there have been surcharges from the care insurance companies since 2022. They have already been increased in the traffic light coalition’s first care reform.