Social Insurance for Long‐term Care: An Evaluation of the German Model

Abstract After fifteen years of existence, Germany's long‐term care insurance shows both successes and weaknesses. The latter led to the 2008 reform, which concentrated on quality improvements, care management and careful adjustments of benefits. While attempts to improve quality and care management contain promising elements, new rules for adjustment are disappointing. This is also true for the issue of future financing as the modest increase in the contribution rate, which is part of the reform, only buys time. Thus, the next round of reform is already in the making, marking the scheme as a system of permanent reform. As Germany is one of the most clear‐cut examples of social insurance, the assessment of this scheme and its recent reform also allow us to draw some general lessons for the design of long‐term care social insurance schemes.