1. Home
  2. Studies
  3. Is care becoming more and more expensive?: Nursing home costs and own shares
Susanna Kochskämper IW-Report No. 41 25. November 2019 Is care becoming more and more expensive?: Nursing home costs and own shares

How have the price components in nursing homes - care rates, remuneration for accommodation and meals and investment costs – developed in recent years?

Download
Nursing home costs and own shares
Susanna Kochskämper IW-Report No. 41 25. November 2019

Is care becoming more and more expensive?: Nursing home costs and own shares

IW-Report

German Economic Institute (IW) German Economic Institute (IW)

How have the price components in nursing homes - care rates, remuneration for accommodation and meals and investment costs – developed in recent years?

Is it true that long-term care has become increasingly expensive? A closer look shows a very differentiated picture: The impression made in the public that nursing costs in long-term care are continuously increasing, can only be partially confirmed: By 2015, the prices of care services have increased significantly in some regions, also in comparison to the general consumer prices, while in other states (Bundesländer) they lagged behind this trend. The same applies to the fees charged for accommodation and meals and the investment costs that can be charged to the person in need of care.
 
Far more significant for price perception, however, is the proportion of care costs that are not covered by the statutory long-term care insurance and are billed to those in need of care. It has increased significantly in the past - across all states. The reason for this is that until 2015, the insurance lines were not adjusted to the actual cost development in this economic sector. The significant part of this feeling, if not the most significant ones, is the fact that, by 2015, insurance benefits were actually devalued over time.
 
Since the latest reform in 2017, a significant increase in this self-supporting share of the nursing costs can again be observed in all federal states - but here again in a large variance between just under 9 percent (Berlin) and almost 66 percent (Thuringia). The reasons for this recent increase can not yet be precisely investigated due to the lack of publicly available data on the nursing rates. Therefore, only a few hypotheses are formulated here, which should be examined in more detail in the future.  

Download
Nursing home costs and own shares
Susanna Kochskämper IW-Report No. 41 25. November 2019

Susanna Kochskämper: Wird Pflege immer teurer? Pflegeheimskosten und Eigenanteile

IW-Report

German Economic Institute (IW) German Economic Institute (IW)

More on the topic

Read the article
The interplay of economic reasoning, voter preferences and party manifestos
Jochen Pimpertz / Ruth Maria Schüler IW-Analyse No. 156 10. June 2024

The Political Economy of Pension Reform

As the German population ages, the country’s statutory pension scheme, which is financed on a pay-as-you-go basis, requires higher and higher contributions while the level of pensions is falling.

IW

Read the article
Jochen Pimpertz IW-Trends No. 4 17. December 2023

Expenditures and Revenues in Germany’s Statutory Health Insurance

Almost annually recurring deficits in Germany’s statutory health insurance system have led to a steady rise in the contribution rate, a percentage of earned income.

IW

More about this topic

Content element with id 8880 Content element with id 9713