German Care Insurance Faces €7.5 Billion Hole as Digitalization Reform Draws Fire
27.06.2026 - 20:27:34 | boerse-global.de
Germany’s long-term care insurance is heading for a financial gap of roughly €7.5 billion by 2027, Health Minister Nina Warken (CDU) has told officials, calling the system a “Sanierungsfall” – a case for restructuring. Total spending in the statutory care sector is projected at around €70 billion for 2025, making the looming shortfall particularly acute. Under current plans, the contribution rate for childless individuals will increase from 4.2 percent to 4.3 percent, while the criteria for assigning care grades are set to become stricter.
The warning comes as a broad coalition of nursing organisations sharply criticised the government’s draft Law for Digitalisation in Care (GeDIG). In a statement on Friday, the Alliance for Digitalisation in Care said the bill lacks a clear strategy for cross-sector healthcare provision and gives too little weight to the role of nursing within Germany’s digital infrastructure. “We need a clear strategic positioning, not just talk about technology,” the group declared. It demanded binding technical standards to ensure interoperability among the various players in the health system, as well as assured funding commitments – without them, warning that innovation risks stalling.
Parallel to the GeDIG effort, Warken’s ministry is preparing two additional digitalisation laws. The Minister is planning a restructuring of the National Agency for Digital Medicine (Gematik), though details remain confidential. Separately, a bill is being drafted to strengthen suicide prevention, including the creation of a federal office and a single nationwide crisis hotline number. With roughly 10,000 suicides recorded annually, officials say the pressure to act is high.
Germany’s statutory health insurance is under comparable strain. DAK CEO Andreas Storm has flagged a potential financing gap of up to €12 billion by 2027. A commission is due to deliver concrete proposals by the end of March. Meanwhile, the President of the Federal Association of Nursing Home Operators, Michael Förster, called the situation “alarming” and urged the government to prioritise sustainable funding over short-term fixes.
On another front, a pharmacy reform takes effect in July. From then, German pharmacies may administer vaccinations using inactivated vaccines, carry out blood draws, and provide injection training. The fee for these services starts at €9 and will rise to €9.50 by 2027. Pharmacists’ associations welcomed the expanded scope; doctors’ representatives warned of overlaps in professional responsibilities.
Finally, the Bundesrat (upper house of parliament) last week called for stricter rules in the General Equal Treatment Act (AGG) to prevent discrimination by artificial intelligence. The federal government rejected the proposal, arguing that existing provisions are technology-neutral and already applicable to AI.
