Wolfgang Greiner, a health economist from Bielefeld University, and Gregor Thüsing, a professor of labor law at the University of Bonn, have strongly criticized the planned location clause for pharmaceutical companies. The two members of the Federal Government’s “Finance Committee Health,” which Greiner chairs, warned in a guest article for the “Handelsblatt” against using health insurance contributions for industrial policy purposes.
They argued that the responsibility of statutory health insurance funds is solely to financially cover the risks of illness, not to promote the economy. If the percentage of reimbursement for medicines were to depend on where manufacturers research or produce, insured individuals would effectively be paying “contributions to conduct industrial policy.”
This criticism arises in the context of a planned increase in the statutory manufacturer rebate for certain drugs, which is set to rise from seven to 15.5 percent starting January 1, 2027. This increase is accompanied by exceptions designed for pharmaceutical companies that meet specific location criteria.
Greiner and Thüsing view these proposed regulations as problematic. They stated that this utilization of contribution funds is fundamentally incompatible with the system and raises significant constitutional and competition concerns. Furthermore, they warned that the location clause could breach European aid law and unfairly favor domestic manufacturers over foreign competitors.
