20/14080: Motion for a Resolution on the Ordinance of the Federal Government – 20/13710, 20/13813 No. 2.2, 20/14053 – Ordinance on the Adjustment of the Contribution Rate in the Social Long-Term Care Insurance 2025 (Long-Term Care Contribution Rate Adjustment Ordinance 2025 – PBAV 2025)
Introduction
The German Bundestag is debating a motion for a resolution on the Ordinance of the Federal Government (20/13710, 20/13813 No. 2.2, 20/14053) on the adjustment of the contribution rate in the social long-term care insurance in 2025 (Long-Term Care Contribution Rate Adjustment Ordinance 2025 – PBAV 2025). The ordinance aims to ensure the financial stability of the long-term care insurance system in the coming years.
Proposed Changes
The ordinance proposes to increase the contribution rate for long-term care insurance from the current 3.05% to 3.4% for statutory health insurance members and from 3.4% to 3.7% for privately insured individuals. The new rates are scheduled to take effect on January 1, 2025.
Justification
The Federal Government argues that the increase in the contribution rate is necessary to cover the rising costs of long-term care services. These costs have been increasing steadily in recent years due to factors such as the aging population, increasing life expectancy, and rising medical expenses.
Impact
The increase in the contribution rate is expected to generate additional revenue of around €4 billion per year. This revenue will be used to cover the expected increase in long-term care costs and to ensure the long-term financial stability of the system.
Controversy
The proposed increase in the contribution rate has been met with criticism from some quarters. Some argue that it will place an undue burden on taxpayers, particularly those who are already struggling financially. Others argue that the increase is not sufficient to address the long-term challenges facing the long-term care insurance system.
Next Steps
The Bundestag is expected to vote on the motion for a resolution in the coming weeks. If the motion is passed, the ordinance will come into effect on January 1, 2025.
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