Germany Targets Online Pharmacy Discounts
Economy / Finance

Germany Targets Online Pharmacy Discounts

Concerns are mounting over the impact of discount offers from European online pharmacies on Germany’s local pharmaceutical landscape, prompting a response from the Federal Association of German Pharmacists’ Associations (ABDA) and the Federal Minister of Health, Nina Warken.

Minister Warken has signaled her intention to address the practice of European online pharmacies offering rebates and bonuses on prescription medications. ABDA President Thomas Preis voiced strong support for this move, stating that the current situation, where contributions from statutory health insurance (GKV) members are potentially diverted to fund promotional offers, is unsustainable. He emphasized that discounts and bonuses have no place in a supportive and patient-focused healthcare system.

The Minister’s stance aims to ensure the continued availability of local, personalized medication dispensing services for all patients and to establish a level playing field between online and brick-and-mortar pharmacies. She highlighted the need to protect close-to-home access to pharmaceuticals.

ABDA reports a concerning decline in the number of pharmacies across Germany, with a reduction of approximately ten percent in the last five years. This trend is, according to Preis, partly attributable to the rise of foreign online pharmacies.

Preis warned that each pharmacy closure diminishes local healthcare provision, particularly impacting vulnerable populations, especially older individuals who rely on pharmacies as essential points of contact for health advice and support in an increasingly digitalized healthcare environment. This creates significant travel burdens for patients and poses a potentially dangerous development. He urged policymakers to act swiftly to safeguard local healthcare structures.

The issue gained further prominence recently following a ruling by the Federal Court of Justice (BGH), which upheld the legality of a European-based online pharmacy offering bonus premiums on prescription medication to German customers over a decade ago. This ruling has fueled debate surrounding the application of price regulations for prescription drugs, which are legally mandated to be consistently priced across all pharmacies and its implications for cross-border EU trade.