German funds want tight drug budgets

The leading German health funds have called for the strict maintenanceof doctors' pharmaceutical spending budgets and have rejected demands by the medical profession for an easing or lifting of budget restrictions. The funds say that the health service's financial problems are due to the uncontrolled increase in doctors, whose numbers went up 27% in 1999.

The funds welcome the government's intention of reaching a new health policy consensus with the doctors and funds in the new parliamentary period, but say the talks must recognize that retention of budgetary control in all areas of the health service is vital if health insurance contributions are to remain stable.

The funds also say there is a savings potential in the drug sector of at least 3 billion Deutschemarks ($1.45 billion), and that budget maintenance is not only vital but achievable. Budget overshoots have been avoided in over half the panel doctor associations, the funds say, and they urge the medical professions to continue in discussions over drug budgets with the government.