German funds seek to cut drug price support

30 April 2001

German public-sector health funds say they want to reduce fixed-leveldrug price support in the period to July 1 by about 1 billion Deutschemarks ($459.2 million). This is their formal reaction, outlined through the local funds' federation, the AOK, to government draft legislation which the funds regard as inadequate.

AOK president Hans Jurgen Ahrens said that, as outlined, the draft law would effectively dismantle the price support regime, adding costs to insured patients of over 3 billion marks, and undercut the funds' key minimal requirements. The price support regime must remain, he said, but be consistent with European Union competition requirements, and must also be administered by the funds rather than the government.

From the government's standpoint, the draft legislation is part of a compromise backed by Health Minister Ulla Schmidt. Earlier talks between the Ministry, industry and funds ended with agreement to create a small-scale but rapid transition regime to 2003, to allow time to settle the future of the price support system. The government would set price support levels in agreement with the drug industry this year and make economies of 650 million marks possible for the funds which, in return, would abandon agreed cuts in price support levels.

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