German Cabinet Approves Long-Term Care Insurance Reform, Raising Contributions for Childless Members and Higher Earners

According to Euronews, the cabinet approved the draft law on Wednesday, September 30, 2026. The two coalition partners, the CDU/CSU and the SPD, had argued over financing for some time. The reform was driven by Health Minister Carsten Linnemann of the CDU. Its stated aim is to steady the finances of the social long-term care insurance system.

The pressure is real. Euronews reports that care funds face rising spending and a growing number of people who need care. For now, the law focuses mainly on savings and financial stabilisation, according to the report.

The firmest change hits members without children. Their contribution surcharge to the social care insurance is due to rise from 0.6 to 0.9 percent on January 1, 2027. That is an increase of 0.3 percentage points. The government wants the extra money to bring in added revenue for the system.

Higher earners are also affected. The income ceiling up to which contributions are charged is to rise by €300. Euronews says this means people with higher incomes would contribute more to financing. The report gives no start date for this change beyond saying that most changes are planned to apply from 2027 or 2028. It does not say how many people this would reach or how much extra revenue it would raise.

From 2028, spouses and registered partners who are currently covered at no charge would owe an additional contribution. Exceptions are planned, including for family members who provide care and for parents of children with disabilities.

Several of the sharpest disputes were not settled. The SPD had criticised Linnemann's original draft as too focused on savings at the expense of people needing care and their relatives. It also wanted private care insurance to play a larger role and asked for a cap on out-of-pocket costs for people living permanently in care homes. According to Euronews, none of these demands entered the law. They are to go to a new commission for further discussion.

That commission is due to present proposals by January 2027. It is to look at how both the statutory and private care insurance systems can contribute more to financing. It will also review benefits for people in residential care. Linnemann said he plans to make subsidies for care home residents more socially targeted, according to the report.

For businesses and strategists, the regulatory picture is therefore split. The contribution changes are concrete, though only the childless surcharge carries a firm date in the report. The larger questions, including the role of private insurers and any cost cap, remain open. The source does not say how private insurers or care providers would be affected, so any view on that is speculation until the commission reports.

The cabinet decision does not make the reform law. The draft must still pass through the parliamentary process, and most changes are meant to apply from 2027 or 2028. Next to watch: the commission's proposals due by January 2027, and whether parliament changes the draft before it passes.

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