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Germany, Long term care reform sees childless people pay more

Germany issues a reform for long-term care that has sparked a lot of controversy as it could see childless people may more.

Long-term care reforms

The cabinet initiated a reform to long-term care insurance in Germany which could make its way to the Bundestag come the summer.

The reforms contains, among other things, a ‘care package’ which should ensure uniform, better salaries and working conditions for the 1.2 million carers in Germany from September 2022.

From January 2022 the government will make available subsidies to limit people’s personal contributions in order to relieve those in need of care and their families from ever-increasing costs.

Those who require level 2 care for more than a year will only have to finance 75 per cent of the costs they hold themselves and after two years this will decrease to 50 per cent and after to 25 per cent.

READ MORE: Changes in Germany 2021: Kindergeld, Minimum wage, petrol price, solos, pensions

Pensioners in Germany should expect an increase in pension

Childless people to foot reform bill

What has been causing up a stir is the proposal the federal government has made in terms of financing the bill. The state is contemplating a subsidy of one billion euros per year from 2022 onward, then, the rest of the bill should be passed on to childless people.

Individuals aged 23 and above who do not have children already pay a 0,25-percent premium on their long-term care insurance; the German government is now proposing to increase this by a further 0,1 percentage points. This would raise the contribution rate for childless people to 3,4 percent of their annual salary, compared to the 3,05 percent paid by mothers and fathers reported I am Expat.

The Federal Constitutional Court already ruled in 2001 that a premium increase for people without children is permissible. This meas that the law is backing the government’s position.

Federal Health Minister Jens Spahn recently defended the decision, claiming on ZDF that “Those who do not raise children have a lower financial burden than those who do.”

Source: I am Expat