In Germany, long-term care is an important issue due to an ageing population and shrinking social networks that result in a greater need for a public long-term care system. In 1995, the social long-term care insurance was introduced in Germany. Long-term care insurance funds are generally linked to health insurance funds. The benefits are financed by virtue of an income-based system where all employees covered by the social security system and their employers have to pay equal contributions on a pay-as-you-go basis. In case of long-term care needs a frail person is assigned to one of three care levels according to his/her severity of need. In recent years, there is a growing need of reforming the long-term care insurance: While health insurance is a fully comprehensive system, long-term care insurance only provides limited coverage. Additionally, there is a lack of competition on the long-term care market. Finally, the financial situation of the German social long-term care insurance is tight.