From Andrea Thomas
BERLIN (Dow Jones) – The Federal Cabinet has decided to reform long-term care insurance, with which carers are paid better and amounts for childless people are to be increased. The controversial financing of the reform provides for an annual tax subsidy for long-term care insurance of 1 billion euros from 2022 and an increase in the contribution rate for long-term care insurance for childless people by 0.1 percentage points to 3.4 percent. The approximately 1.2 million nursing staff will all be paid according to the tariff in the future.
Care facilities are also to be relieved of a total of 3 billion euros. According to the Federal Minister of Health Jens Spahn (CDU), the pay of the nursing staff will increase by up to 300 euros per month. In the future, health insurances will only conclude supply contracts with elderly care institutions that pay a similar amount according to tariff or salaries. For nursing home residents, there should also be a limit to their share of the nursing costs.
The draft law is to be passed by the Bundestag in June.
Employers suspect breaches of word when it comes to social security contributions
Criticism of the care reform came from the German employers’ side. She accused the federal government of breaking her word. Because of the higher spending, there was a risk of higher social security contributions, criticized the Federation of German Employers’ Associations (BDA). Federal Labor Minister Hubertus Heil (SPD) in turn praised the reform, as it ensured decent salaries for the carers.
“According to the motto ‘After me the flood’, new costs for long-term care insurance are being produced which can no longer be paid in the coming year with the counter-financing that has now been decided and will therefore inevitably lead to premium increases”, complained BDA managing director Steffen Kampeter.
This would not solve the structural challenges of long-term care insurance and the following generations as well as the contributors to the plaything of party-political profiling. This is the opposite of a sustainable policy. “Anyone striving for the social security guarantee cannot agree to this draft. The cap on social security contributions at 40 percent remains essential,” demanded Kampeter.
Verdi warns of convenience agreements
The Verdi union considers the draft to be inadequate, as the regulations on higher pay are not an adequate substitute for a collective agreement for the entire care sector.
“There is no mechanism in the draft law that excludes compliance agreements between pseudo unions and care providers who still do not want to pay fair wages,” criticized Sylvia Bühler, a member of the Verdi federal executive board. “Even with such collective agreements, the prerequisite for a supply agreement would then be met.”
Criticism of home care and funding
The German Caritas Association, on the other hand, was disappointed that home care would go away empty-handed with the reform. Caritas President Peter Neher criticized the reform “no improvements for family carers” can be found. After the federal election, the new government will have to tackle a nursing reform again.
“The fundamental question of financing – how much care is worth to us as a society and who has to pay for it – has not yet been clarified”, explained the Caritas President. “We need answers, and a tax subsidy for long-term care insurance must not be taboo.”
The financing of the long-term care reform was criticized by the health insurance companies. DAK boss Andreas Storm told the Handelsblatt that the planned measures were a “heavy burden for the future federal government”. The care reform has so far been completely inadequately financed.
“A deficit of 2 billion euros is already emerging for 2022, which would continue to rise massively in the following years,” said Storm. The consequence would be substantial increases in long-term care insurance premiums. In addition, the planned limitation of personal contributions for nursing home residents takes effect much too late. “This misses the important goal of reducing the increase in welfare recipients in nursing homes in the coming year,” said Storm.
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DJG / aat / uxd
(END) Dow Jones Newswires
June 02, 2021 05:14 ET (09:14 GMT)
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