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German cabinet approves long-term care insurance reform - Finance news and analysis from Global Banking & Finance Review
Finance

German cabinet approves long-term care insurance reform

Published by Global Banking & Finance Review

Posted on September 30, 2026

2 min read

· Last updated: September 30, 2026

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Germany Approves Long-Term Care Insurance Reform to Avert Deficit

Cabinet Approval and Legislative Background

BERLIN, Sept 30 (Reuters) - Germany's cabinet approved a bill on Wednesday to stabilise the long-term care insurance system, following days of coalition wrangling over the planned overhaul.

Details of the Legislation

• The legislation, put forward by Health Minister Carsten Linnemann, was approved after the Social Democrats sought changes in high-level coalition talks, the government said in a statement. Further details were not immediately available.

Significance of the Reform

• "It is the first important step toward stabilizing the long-term care system,” Linnemann said, averting a looming deficit of €8 billion.

Rising Demand for Long-Term Care

• The number of people requiring long-term care has tripled over the past 20 years to around six million.

Future Steps and Political Debate

Stabilisation Package and Expert Commission

• A government source said the cabinet had backed a stabilisation package for long-term care and that a separate decision was expected next week to establish a commission of experts tasked with swiftly drawing up structural reforms. Its work its scheduled to begin in October.

SPD's Position on Systemic Changes

• The SPD had pushed for measures beyond spending cuts, arguing that the system needed more fundamental changes.

Reporting and Editorial Credits

(Reporting by Christian Kraemer, Markus Wacket and Andreas Rinke, writing by Maria Martinez; Editing by Nick Zieminski)

References

Frequently Asked Questions

What did the German cabinet approve regarding long-term care insurance?
The German cabinet approved a bill to stabilize the long-term care insurance system and avert an €8 billion deficit.
Who introduced the long-term care insurance reform bill?
Health Minister Carsten Linnemann introduced the long-term care insurance reform bill.
How many people in Germany require long-term care?
Around six million people now require long-term care in Germany, tripling over the past 20 years.
What further actions are planned after the bill's approval?
A commission of experts will be established to draft structural reforms, starting its work in October.
What were the concerns of the Social Democrats regarding the reform?
The Social Democrats pushed for measures beyond spending cuts, arguing for more fundamental changes to the system.

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