German Health Insurers Reject Taxpayer‑Funded Pharma Incentives, Call for Supply‑Contract Reforms.
Economy / Finance

German Health Insurers Reject Taxpayer‑Funded Pharma Incentives, Call for Supply‑Contract Reforms.

The German statutory health insurance association has rejected a proposal to use contributions from payers to finance industry policies aimed at boosting the pharmaceutical sector. The rejection was communicated in a letter addressed to Health Minister Nina Warken (CDU) on 6 February, as reported by Politico.

The ministry is currently discussing within its pharmaceutical and medical‑technology dialogue how to strengthen Germany’s position as a pharmaceutical hub. From the insurers’ perspective, raising drug prices is not a viable option. In the letter, the association warns that “industry‑policy driven burdens on contributors in the area of drug reimbursement must be avoided”. It notes that Germany already has the second‑highest spending on prescription drugs within the OECD and that elevated drug prices are “not causally linked” to location factors such as research, development, and production.

Instead of pushing for higher prices, the letter recommends that the minister rely on “contractual supply and stock‑keeping obligations” to improve access to medicines.

Earlier, on 4 February, five pharmaceutical associations had also written to the minister, cautioning against a “sharpened price competition”.

Statutory health insurance spending on pharmaceuticals rose from €50 billion in 2023 to €55 billion in 2024.