Skyrocketing costs making care homes inaccessible for many - potential solutions explored - Skyrocketing costs leaving nursing homes beyond reach: Solutions proposed
In Germany, the cost of nursing home care has been on the rise, with monthly expenses for residents averaging around 3,100 euros nationwide. This figure varies between federal states, with Bremen having the highest average at 3,449 euros per month, and Saxony-Anhalt the lowest at 2,595 euros [1][4][5].
The surge in costs is primarily attributed to three key factors: the growing number of people needing care, the shortage of specialist care staff, and the rising overall care and living expenses within nursing homes. Since 2013, the demand for care in cities like Berlin has nearly doubled, leading to higher service and personnel requirements [3]. The lack of qualified caregivers drives up labor costs, significantly contributing to care home expenses. Additionally, the combined costs of personal care, housing infrastructure investments, and living needs all contribute to increased monthly fees [1].
To make care more affordable, several solutions are being proposed or implemented. These include supporting family caregivers, preventative care measures, state care plans, and wage increases for care workers. The aim is to enhance home care support, reduce the need for expensive residential care, and improve the quality of care [3].
To address the staffing shortage, higher wages for elderly care workers have been introduced from July 2025. This move is expected to stabilize and grow the workforce, potentially moderating cost increases over time [2]. Preventative care measures, such as home visits to older adults, aim to provide information on support services and how to live safely and independently at home longer, thereby reducing demand for nursing home admission [3].
However, the rise in nursing home expenses still imposes a heavy financial burden on residents and their families. To alleviate this burden, various reform proposals have been suggested, including more government money, caps on co-payments, restructuring the model to a full insurance, and the federal government refunding COVID-19-related expenses and taking over pension contributions for caring relatives [6].
The federal and state governments have formed a working group to find comprehensive solutions for nursing home care costs, with results expected by the end of the year. The group is tasked with addressing issues such as the rising co-payment burden on home residents and the relief subsidies, which are driving costs and expected to reach 7.3 billion euros this year [6].
Health Minister Nina Warken (CDU) has stated that one goal is to ensure that care should not lead to poverty. The CEO of the association of substitute health insurance companies, Ulrike Elsner, concurs, stating that the current co-payment burden on home residents is no longer bearable [7].
The Federal Court of Auditors has reported that the issues run deeper, with relief subsidies not being distributed effectively [2]. To address this, the states must take responsibility for covering the costs for investments and training [6].
In summary, rising nursing home costs in Germany stem from demographic changes and workforce challenges. Proposed solutions centre on enhancing home care support, preventative measures, workforce improvements, and strategic state planning to contain costs and increase affordability. The federal and state governments are working together to find comprehensive solutions to this deep-seated challenge.
- The growing demand for nursing home care, the shortage of care staff, and increasing living expenses within these facilities are the primary reasons behind the rising costs in Germany, where monthly expenses average around 3,100 euros nationwide.
- To make nursing home care more affordable, measures such as supporting family caregivers, preventative care, state care plans, and wage increases for care workers have been proposed.
- Aiming to improve quality of care and reduce demand for residential care, these solutions seek to enhance home care support and provide information on support services for older adults.
- To address the staffing shortage, higher wages for elderly care workers are scheduled to be introduced from July 2025, which is expected to stabilize the workforce and potentially moderate cost increases over time.
- With governments facing pressure to address the rising co-payment burden on nursing home residents, proposals include more government funding, caps on co-payments, restructuring the model to a full insurance, and the federal government refunding COVID-19-related expenses and taking over pension contributions for caring relatives.
- A joint working group of federal and state governments is tasked with finding comprehensive solutions for nursing home care costs, addressing issues such as rising co-payment burdens, relief subsidies, and investments and training costs.
- Health Minister Nina Warken and the CEO of the association of substitute health insurance companies have emphasized that care costs should not lead to poverty and that the current co-payment burden on nursing home residents is no longer bearable. However, the Federal Court of Auditors has critically reported on the ineffective distribution of relief subsidies, calling on the states to take responsibility for covering costs and investments in this area.
