Germany to tap climate fund for long-term care digitalisation, raises contributions for high earners

Health Minister Carsten Linnemann outlined a package of cost-cutting measures for Germany’s long-term-care system, noting that the sector is under severe financial pressure with roughly six million dependents today, up from two million two decades ago. To fund digitalisation, 1.6 billion euros will be drawn from the federal special-purpose fund earmarked for infrastructure and climate neutrality, while the states are asked to contribute an additional 400 million euros.

The contribution assessment ceiling will be lifted by 300 euros per month and, from 1 January 2027, the surcharge for childless insureds will rise to 0.9 percent. Linnemann pledged not to raise the basic care contribution at that date and said the first reform package’s core goals will be met. An expert commission will present recommendations by the end of January 2027 to modernise the system for the 2030s, and a cabinet draft for a comprehensive structural reform is expected by Easter 2027.