SPD wants more tax revenues for elderly care

In view of growing gaps in the care of the elderly in Germany, the SPD insists in the Bundestag with Finance Minister Christian Lindner (FDP) on more tax money for the area. "Five million people in need of care, their relatives and friends expect from the progress coalition that we stand by their side – especially when times are difficult," said deputy parliamentary group leader Dagmar Schmidt of the German Press Agency in Berlin.

Schmidt put care in a row with areas such as health care, mobility, digitization and further education: "Investments that we make today will soon pay off and secure our prosperity and social cohesion," said the SPD politician. "It is the task of the finance minister to provide the necessary funds now and finally to take responsibility for the revenue side."

In the case of elderly care, Schmidt referred to the situation of those affected and relatives. "They do great things day in and day out, and we need to support them and make their lives easier," Schmidt said. "We have deposited concrete ideas in the coalition agreement." These must now be implemented. "This includes stable financing, including from tax revenues, as well as adapting services to the needs of those affected."

Lauterbach has presented reform proposals

It has been discussed for some time whether long-term care insurance should be financed more through taxes because of the increasing number of people in need of care in an ageing society. On 1 January 2022, a federal subsidy of one billion euros per year for long-term care insurance was introduced. Already in 2021, the federal government had come up with one billion euros for additional costs due to the corona pandemic.

Now the pressure in the care sector continues to rise. A week and a half ago, headlines had made that the proportion for people in need of care and their families for a home place have risen further. According to the Ersatzkassen-Verband, they climbed within a year by 278 euros to 2411 euros per month. A relief surcharge was introduced in 2022 to limit these shares. When asked, Schmidt did not want to comment on the problem of own contributions. In the coalition agreement, the SPD, Greens and FDP had announced that they would observe the relief surcharges and examine "how the own contribution can be further reduced".

In addition, the traffic light coalition had announced at its start in 2021 to finance non-insurance benefits such as pension contributions for relatives from taxes, to strengthen home care and to make the care allowance more dynamic from 2022. Care allowance is available if people in need of care are cared for at home. Social associations had criticized that the care allowance had not been increased since 2017, despite a traffic light announcement to the contrary and inflation.

Behind the scenes, the coalition is already struggling over future care financing. Reform proposals by Health Minister Karl Lauterbach (SPD) for the care would bring "further service expansions in the billions", it was said in the Ministry of Finance, according to a report in the "Handelsblatt" on Thursday. There is still a "considerable need for advice".

Lauterbach had previously announced improvements for care by relatives and outpatient services. Lauterbach also pointed out in the "Stern" that the coalition agreement provided for "further tax subsidies". Deputy parliamentary group Schmidt strengthened Lauterbach's back. "Especially in times of change, it is all the more important to strengthen services of general interest and the welfare state," she argued. In addition to the plans in the coalition agreement on tax avoidance, tax loopholes and tax havens, it is also important to distribute the burden of the pandemic and war more fairly.

Against the background of these debates, increasing care contributions are already foreseeable. Lauterbach had said that one would not be able to avoid "that the contribution rates rise". Since the beginning of 2022, the contribution to long-term care insurance has been 3.05 percent of gross wages (3.4 percent for people without children). At the turn of the year, the umbrella association of statutory health insurance had criticized politics for currently accepting a deficit of 2.2 billion euros in long-term care insurance.

According to a study by the Scientific Institute of Private Health Insurance, the number of people in need of care could rise from just under 5 million to just under 2025.5 million by 5 and up to 2030.5 million by 75.