Second Care Strengthening Act (PSG II)
The Second Care Strengthening Act (PSG II) reformed Germany's statutory long-term care insurance from 1 January 2017 by replacing the three care levels with five care grades and a newly defined concept of care dependency.
Core elements
PSG II entered into force on 1 January 2016; the switch of the assessment procedure and the previous three care levels to five care grades took effect on 1 January 2017. Key contents include the redefinition of care dependency, improved benefits for people with dementia and mental illness, and an entitlement to additional support services in residential care facilities.
Scope and changes
The act also improves the social security coverage of family carers and raised the long-term care insurance contribution rate to 2.55 percent (2.8 percent for the childless) from 1 January 2017. The care-related co-payment is set independently of the care grade; existing benefit recipients are transferred automatically without being placed at a disadvantage.
Practical relevance
For private supplementary long-term care insurance, PSG II provides the regulatory reference framework: because statutory long-term care insurance only offers basic protection, a coverage gap remains that supplementary insurance addresses. The care-grade system also forms the basis for triggering benefits under many private care insurance tariffs.