Health: What will 2025 bring in care?

Nursing care insurance will become more expensive again for millions of contributors in the new year. However, benefits for those in need of care at home and in nursing homes are also increasing. As of January 1, 2025, all benefit amounts from the nursing care funds will be increased by 4.5 percent, as determined by a reform of the traffic light coalition in 2023. This reduces the care costs you have to cover yourself, explained the Federal Ministry of Health. However, a fundamental reform of care finance is becoming an election campaign issue.

When it comes to long-term care insurance, billions in spending are rising. In order to secure its solvency for the new year, the federal government decided to increase contributions again after contributions were last raised in the summer of 2023.

As of January 1, 2025, there will now be a surcharge of 0.2 percentage points. The employer’s contribution included in the contribution increases from 1.7 percent to 1.8 percent. This should bring in a total annual additional income of 3.7 billion euros.

The contribution is not the same for insured persons, but according to a ruling by the Federal Constitutional Court there is a sliding scale depending on the number of children. In the future, for a child it will be 3.6 percent of the gross wage and for people without children it will be 4.2 percent.

For larger families, discounts apply until the respective child’s 25th birthday. With two children the contribution will now be 3.35 percent, with three children it will be 3.1 percent, with four it will be 2.85 percent and with five or more children it will be 2.6 percent. If a child is older than 25, “his” deduction does not apply. If all children are out of parental leave, the one-child contribution applies.

The service expenditure of statutory nursing care insurance has already risen to more than 50 billion euros annually. Now there will be an increase of 4.5 percent for all care services on January 1, 2025. According to the ministry, this amounts to a total of 1.8 billion euros more that is directly available to those in need of care.

In addition, those in need of care also pay their own contribution for pure care and support. Because nursing care insurance – unlike health insurance – only covers part of the costs.

The care allowance, which had not been increased for a long time, is now coming after an initial increase at the beginning of 2024: Depending on the level of care, it is currently between 332 and 947 euros per month – in the future it will be between 347 and 990 euros. Those affected who do not live in institutions receive care allowance. You can use it freely, for example for care.

In addition, the “relief amount”, which can be used to finance help in the household or for shopping, increases from 125 euros to 131 euros per month. According to the ministry, around 4.4 million people in need of care are cared for at home.

For around 840,000 people in need of care in homes, care benefits will also be increased: for care level 2 from 770 euros to 805 euros per month, for care level 3 from 1,262 euros to 1,319 euros, for care level 4 from 1,775 euros to 1,855 euros and for care level 5 from 2,005 euros to 2,096 euros per month.

A personal contribution is due for the rest of the care costs, which has been increasing for years. To ease the burden, there are surcharges that were increased at the beginning of 2024. This reduces the personal contribution in the first year in the home by 15 percent, in the second by 30 percent, in the third by 50 percent and from the fourth year onwards by 75 percent.

After the break of the traffic light coalition, there are high expectations that the new federal government will fundamentally reorganize care financing. “Care must not be a risk of poverty,” said Health Minister Karl Lauterbach as a goal. His SPD wants to limit the personal contributions for pure care in the home to 1,000 euros per month – in the summer, the nationwide average was a good 1,400 euros, according to health insurance data.

In the program, the Union mentions, among other things, tax resources and “affordable supplementary care insurance”. In addition to contributions, the FDP is aiming for “a funded component”. The Greens want non-insurance services to be “financed more appropriately by the state”.