The federal government has decided to reverse course on one of its most contentious proposed austerity measures for the statutory health insurance (GKV) system, according to reports in the business newspaper Handelsblatt. Instead of implementing a manufacturer discount that would be recalculated annually for pharmaceutical companies, the coalition intends to introduce a fixed discount. This change aims to provide long-requested planning security to the industry.
However, Berlin is not planning to exempt the pharmaceutical sector from new financial burdens entirely. To achieve the GKV’s savings goals, the coalition intends to place significantly heavier demands on companies than previously planned. Currently, pharmaceutical companies grant health insurance providers a legally mandated discount of seven percent on patented drugs. Sources from the coalition indicate that this manufacturer discount is set to rise to 15.5 percent-more than double its current rate.
The shift in government plans does little to appease the industry. Several pharmaceutical companies, including Boehringer Ingelheim and Eli Lilly, had previously announced plans to cut broad investments in Germany following the original proposals by Health Minister Nina Warken (CDU). While the companies now view the fixed, but raised, manufacturer discount critically, the situation is expected to enter the agenda of the Coalition Committee, which is scheduled to meet later this week. The possible inclusion of an expanded “location component” in the negotiation of the manufacturer discount could play a role in finding a solution.
