On the Reform of Long-Term Care Insurance: A Generation Balance

Lewe Bahnsen and Bernd Raffelhüschen, University of Freiburg, cover issues of sustainable financing of long-term care insurance and the effects of the German law on the strengthening of Long-Term Care II Act. Their analysis highlights the challenges that arise, particularly in the course of demographic ageing. The reform not only favours the living at the expense of future generations, but also generously distributes introductory profits. Accordingly, the already high implicit debt rises even further with this reform.