News Question of the week: What does a place in the nursing home cost?

News Question of the week: What does a place in the nursing home cost?

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Friday, 11.08.17 , written by Annabell Meyer The statutory long-term care insurance offers only partially comprehensive coverage to people in need of care. This is especially felt by nursing home residents. Because they not only have to contribute to the care costs, but also pay for the accommodation and food from their own pockets. Month by month the expenses add up. But what exactly does a place in a nursing home cost?  The food must pay home residents completely self

  • The move to a nursing home is emotionally and financially stressful.
  • Nationwide, people in need of care, a place in the nursing home on average around 1,700 euros per month, as a study of the PKV Association shows.
  • Those who do not provide additional care insurance can barely lift such amounts and thus risk financial pressure on themselves and their relatives.

With the second stage of the nursing reform, care has improved considerably. As a result, people in need of care no longer have to contribute more to the care costs in the home as their care needs increase. Instead, a fixed amount applies to nursing home residents, which is independent of the level of care required. For people with low care needs, however, this means a higher financial burden. On the other hand, people who have a high level of care are significantly relieved.

Nevertheless, the care in the home remains expensive. Because in addition to the own contribution sufferers have to pay further costs such as food and accommodation completely themselves. Nationwide, it costs a place in the nursing home on average about 1,700 euros per month , as a new study by the Association of Private Health Insurance Association (PKV Association) shows. In it, the costs for 11,400 retirement homes in Germany were determined. Depending on the region, there are sometimes serious price differences.

 

In Thuringia nursing home residents pay the lowest care costs

The money from the statutory long-term care insurance covers only part of the costs for the nursing care in the old people’s home. The remaining amount must be paid by the person in need of care.

How much the own contribution for a place in the nursing home costs, depends on the respective institution. The study of the private health insurance association reveals big differences nationwide . Thus, the own share in a nursing home in Thuringia is on average 246 euros per month. With monthly payments of around € 858, senior citizens in Saarland or Berlin pay more than three times as much.

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What other costs do nursing home residents pay?

For the own contribution for the care costs the expenses for accommodation and food as well as investment costs, for example for renovations in the home, are added. These must be worn by the residents themselves. Here, too, the states differ sometimes severely, as confirmed by the current figures of the PKV association, the procontra present.

While, for example, meals in Lower Saxony and Brandenburg do not even cost 150 euros per month, in North Rhine-Westphalia an average of almost 420 euros is due per month. Also for the accommodation, the facilities require different amounts depending on the region. In Bavaria, those in need of care pay around 291 euros for this, and in Thuringia 545 euros again.

If there are financial bottlenecks, the children have to step in

Even if people in need of care find a comparatively cheap nursing home, they often have to spend more than 1,000 euros a month after deducting the statutory care benefits. For many people, this is difficult to manage. Thus , the home costs eat not only their pension, but also their savings .

If those affected can not pay themselves, their children will be held responsible. Depending on their income, they are required to pay part of their parents’ home expenses. In order to avoid financial bottlenecks in the case of long-term care, it is recommended to make provision in good time with a private long-term care insurance. This helps to close the care gap.

How Expensive is a Nursing Home in Germany?

The total share that patients need to raise in the home arises when all other costs are combined with the own contribution for the nursing care. Nationwide, the total cost is on average around 1,700 euros. The leader is North Rhine-Westphalia with 2,163 euros a month . Home-dwellers in Mecklenburg-Western Pomerania have to pay just under half as much and therefore least. There, a place in the nursing home costs on average around 1,104 euros.

In the past year, Germany’s lending banks only granted around ten percent of all consumer loans via this channel. With an increase of 16.5 percent, however, online loans outperformed the previous year. “The increasing digitization offers immense opportunities for the credit banks, but it also fuels the competition,” said the chairman of the banking industry association, Jan W. Wagner, on Tuesday in Frankfurt.

Total volume of new lending also increased

Overall, the institutes issued new loans with a volume of 117.5 billion euros – an increase of 8.4 percent compared to the previous year. € 43.7 billion of this went to consumer finance and € 57.5 billion to purchase finance, which, for example, helps car dealers to finance their inventories. By the end of the year, institutions had lent € 149.9 billion to consumers and businesses, including ongoing contracts – 6.1 percent more than a year earlier. The association represents 57 institutes.

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The ECB will buy debt to Spain under “strict conditions” and only if it requests the rescue

The ECB will buy debt to Spain under “strict conditions” and only if it requests the rescue

  • Draghi has informed in a press conference of the deliberations of the government council and has offered some details of the new debt purchase program.
  • The intervention will be subject to “strict conditions”, supervised by the IMF, and must be preceded by a request for aid to the EU rescue fund.
  • The ECB has decided to keep the interest rates of the euro at the minimum of 0.75%.
  • Rajoy does not confirm if Spain will ask for the ransom until he sees the proposal “in detail”.
 

The president of the European Central Bank (ECB), Mario Draghi, has confirmed on Thursday that he will buy sovereign debt from countries in crisis in the eurozone with the aim of guaranteeing the “irreversibility” of the euro. The intervention will be subject to “strict conditions”, supervised by the International Monetary Fund (IMF), and must be preceded by a request for aid to the EU rescue fund by the beneficiary governments.

The Italian banker explained that this program, called OMT, will allow the entity to deal with “severe distortions” in the bond markets, as well as guarantee the “irreversibility of the euro”.

The intervention of the rescue mechanisms is a necessary condition “We adhere strictly to our mandate,” argued Draghi, who pointed out that governments must be ready to activate rescue mechanisms when there are risks or exceptional situations, “under strict conditionality.” Also, the Italian banker noted “the adherence of governments to their commitments and the intervention of rescue mechanisms are necessary conditions.”

 

Draghi has also specified that the new program of purchase of sovereign bonds that the institution will carry out will concentrate on debt with maturities between one and three years, adding that amounts will be dedicated “without limit” and that these purchases will be later “completely sterilized”. “

Also, the Italian banker indicated that the figures of this program will be informed weekly , in addition to confirming that the BCE will renounce its privilege of collection with respect to the rest of private creditors. In this way, the president of the ECB reported that the entity has decided to terminate the previous program of sovereign bond purchase (SMP).

“As for Spain, we have marked a route, it is up to the governments , the Government of Spain and the governments of the eurozone” to decide whether to activate the debt purchase, Draghi said at a press conference when asked about if the new program will be ready in October, when the Government of Mariano Rajoy must face important debt maturities.

“The vote has not been unanimous”

The Italian politician explained at that press conference after the Governing Council of the monetary entity that the “vote has not been unanimous” and that there has been “a dissenting opinion”, although it has not revealed which member is involved. The German Bundesbank has been openly against a program of purchase of sovereign bonds by the ECB.

Draghi stressed that the monetary entity conditions the purchase of sovereign debt to the programs of complete macroeconomic adjustment or a preventive – that is less hard – of temporary and permanent rescue funds and that the collaboration of the International Monetary Fund will be sought at the time of the supervision.

The German Bundesbank has been against the program of purchase of sovereign bonds The Italian emphasized that a necessary condition so that the BCE acts in the market of secondary debt is that the governments accept the “strict and effective conditions” that are united to a program of European rescue funds, be it the European Stability Fund (EFSF) or the future European Stability Mechanism (ESM), mechanisms that would intervene in the primary market.

The program could also be applied to countries that are currently under a rescue plan (Greece, Ireland and Portugal) when they regain access to the bond markets , he explained.

The ECB will assess the extent to which an intervention is warranted and will be able to decide with “full discretion” the start of the bond purchase program, its continuation and even its suspension if the beneficiary country does not meet the conditions.

In addition, the agency will relinquish its status as a preferred creditor and accept “the same treatment as private creditors” in case of restructuring of the new debt acquired. The liquidity injected into the system with these purchases will be “fully” withdrawn through other operations, Draghi explained.

Maintains interest rates at 0.75%

In addition, the European Central Bank (ECB) has decided on Thursday to maintain stable euro interest rates at the historical low of 0.75% , the institution announced.

In this way, the issuing institute of the eurozone is reluctant to further relax its monetary policy to stimulate the recovery of economic activity, after the year-on-year rate of inflation in the euro zone experienced a rise of two tenths in August compared to the month previous to reach 2.6%.

The GDP of the euro zone registered a contraction of two tenths in the second quarter of 2012 However, the consulted consensus of analysts is confident that the president of the ECB, Mario Draghi, will provide more details during the press conference that will begin the 2.30 pm on the institution’s plans to intervene in the sovereign debt markets .

The gross domestic product ( GDP ) of the euro zone registered a contraction of two tenths in the second quarter of 2012 compared to the first three months of the year, when it had stagnated, leaving the euro bloc on the verge of recession, in the which are already five countries of the eurozone (Spain, Greece, Italy, Cyprus and Portugal).