Expensive Emergency Evacuation Fees

The Confederation of German Employers' Associations (BDA) has presented a twelve-page paper outlining its demands for long-term care reform, calling for urgent restructuring to address financial constraints and ensure the sustainability of the social system.

The BDA's proposals could have significant implications for nursing care recipients and their partners, with potential reductions in financial resources available for their support. The BDA's stance, which advocates for the protection of high incomes and assets but opposes the protection of grandma's house and grandpa's pension, has been criticized as an attack on the principle of the German social state.

Last year, the long-term care insurance took in a total of 64 billion euros. However, the BDA warns that the current welfare state model in Germany is unsustainable, citing high administrative costs (25 billion euros) and emphasizing that "we can’t afford everything we wish for" regarding social benefits, including care support.

The BDA's demands include the abolition of the relief allowance, a monthly allowance of 131 euros for those in need of care who live at home to pay for help with household tasks. The BDA also proposes that care insurance should not provide any benefits in the first year of requiring care, with people having to pay for their care themselves during this period.

Moreover, the BDA suggests a "sustainability factor" to limit insurance benefits if the number of people in need of care increases more than the number of contributors. The BDA aims to permanently cap the total social security contributions paid by employees and employers at below 40 percent of gross wages.

The black-red coalition has agreed to form a federal-state working group to submit proposals for long-term care reform, which could result in complete benefit cuts for the first time since its introduction 30 years ago. The coalition aims to stop the increasing expenditure dynamic in long-term care insurance and examine sustainability factors, including the implementation of waiting periods.

However, health economist Heinz Rothgang finds the BDA's positions a "frontal attack" on the care insurance, arguing that the current services of the nursing care insurance are insufficient and proposing alternatives to cuts that could provide more protection for people.

The federal government still owes long-term care insurance costs that arose during the pandemic, estimated to be around 5.2 billion euros. This year, the government has only granted long-term care insurance 0.5 billion euros, in the form of a loan that needs to be repaid.

While the German federal government has approved record social spending increases (219 billion euros), including a rise in citizen benefits, the BDA’s stance signals concern over long-term sustainability and hints at the possibility of tightening or reprioritizing funds away from certain welfare areas such as nursing care. This could impact the financial resources available for those needing nursing care and their partners by potentially reducing benefit levels or increasing eligibility restrictions.

Moreover, broader reforms advocated by the BDA also focus on labor market flexibility and increasing working hours to address demographic pressures and social security system overloads. Although not directly about nursing care financing, these measures reflect an overall strategy to sustain the welfare system financially, which may indirectly affect the resources allocated to nursing care recipients.

In summary, the BDA’s demands for care reform aim to address the financial sustainability of Germany’s social system by controlling costs and improving efficiency. This likely means stricter allocation or possible reductions in the financial resources available for nursing care recipients and their partners, unless compensated by other reforms or increased government spending—though the latter seems at odds with the BDA’s cost-saving stance.

The financial constraints in the long-term care system have prompted the Confederation of German Employers' Associations (BDA) to advocate for restructuring.
Science and data-and-cloud-computing might be useful in finding solutions to alleviate the financial challenges in the long-term care system.
The medical-conditions and chronic-diseases of nursing care recipients could worsen if there are potential reductions in financial resources for their support.
Chronic-kidney-disease patients, along with other chronic disease patients, could be affected by the proposed abolition of the relief allowance.
Health-and-wellness programs could help nursing care recipients improve their quality of life amidst possible funding cuts.
CBD, a popular supplement for health and wellness, could potentially alleviate some symptoms of chronic diseases, but its long-term effects are still under study.
Finance plays a crucial role in the BDA's long-term care reform proposals, with an aim to cap social security contributions.
Personal-finance management becomes even more important for families dealing with chronic-diseases and medical-conditions, given the potential reductions in financial resources.
Investing in businesses that focus on healthy-cooking and food-and-drink options could help promote a sustainable lifestyle for people with chronic diseases.
Home-and-garden improvements could make living spaces more accessible for nursing care recipients, mitigating some of the potential impacts of benefit cuts.
Businesses specializing in home-and-garden modifications could benefit from the broader reforms pushing for labor market flexibility and increased working hours.
The BDA's reform proposals, including the suggested waiting periods, could have implications on personal-growth and career-development for individuals working in nursing care.
Sports, such as basketball, and sports-betting platforms may not seem directly related to long-term care, but their revenues contribute to personal-finance and could potentially support the welfare system.
education-and-self-development initiatives could help nursing care recipients and their partners adapt to the changes in the social system and find new opportunities for financial stability.
Real-estate developments could provide more comfortable living spaces for nursing care recipients, but their costs should be considered when examining the sustainability of the social system.