Public Expenditure on Long-term Care After the Abolition of Asset Recourse in Long-term Inpatient Care

The abolition of asset recourse in inpatient care and the future annual valorisation of cash benefits for long-term care make it necessary to reassess the expenditure paths for cash benefits and benefits in kind. Moreover, the present analysis estimates for the first time the fiscal effect of the abolition of the recourse on public expenditures. In total, public spending on cash and benefits in kind will increase from 5.1 billion € in 2018 to 9.1 billion € in nominal terms or 7.5 billion € at 2018 prices, according to projections for 2030. The abolition of the recourse system led to additional fiscal costs of 272.7 million € by the Länder and municipalities in 2018. The annual additional expenditure will rise to almost 600 million € until 2030.